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I can't figure out how to add a purchase of a second home

 
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IreneS
Intuit Alumni

I can't figure out how to add a purchase of a second home

The purchase of a second home does not need to be entered on your tax return.  Most of the expenses involved in purchasing the home are not deductible, but added to the basis of your house, to reduce any gain when you sell it in the future.

You can, however, deduct the mortgage interest, mortgage insurance, and real estate taxes just like you would on your principal residence [as long as the total debt for the two homes is $1 million or less].

 

To enter interest on the second home loan, please follow these steps:

  1. Click on Federal Taxes > Deductions & Credits.
  2. In the Your Home section, click on the Start/Revisit box next to Mortgage Interest, Refinancing, and Insurance.  
  3. If you haven't entered any mortgage information yet, just proceed through the screens, entering the requested information on your first mortgage.  When finished, you will be brought to the Mortgage Deduction summary screen.
  4. If you've already entered information on one loan, you will be brought to the Mortgage deduction summary screen.  Click the Add a Lender box on the Mortgage deduction summary screen. 
  5. Proceed through the screens, entering the requested information.
  6. Your will be brought back to the Mortgage deduction summary again.  You can click on the Add a Lender box as many times as you need to enter your loans.

 

[Edited | 4/14/2020 |  1:09pm PDT]




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3 Replies
IreneS
Intuit Alumni

I can't figure out how to add a purchase of a second home

The purchase of a second home does not need to be entered on your tax return.  Most of the expenses involved in purchasing the home are not deductible, but added to the basis of your house, to reduce any gain when you sell it in the future.

You can, however, deduct the mortgage interest, mortgage insurance, and real estate taxes just like you would on your principal residence [as long as the total debt for the two homes is $1 million or less].

 

To enter interest on the second home loan, please follow these steps:

  1. Click on Federal Taxes > Deductions & Credits.
  2. In the Your Home section, click on the Start/Revisit box next to Mortgage Interest, Refinancing, and Insurance.  
  3. If you haven't entered any mortgage information yet, just proceed through the screens, entering the requested information on your first mortgage.  When finished, you will be brought to the Mortgage Deduction summary screen.
  4. If you've already entered information on one loan, you will be brought to the Mortgage deduction summary screen.  Click the Add a Lender box on the Mortgage deduction summary screen. 
  5. Proceed through the screens, entering the requested information.
  6. Your will be brought back to the Mortgage deduction summary again.  You can click on the Add a Lender box as many times as you need to enter your loans.

 

[Edited | 4/14/2020 |  1:09pm PDT]




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I can't figure out how to add a purchase of a second home

I bought a second home in Nevada- can i still add the mortgage interest  in my CA tax returns?

BillM223
Expert Alumni

I can't figure out how to add a purchase of a second home

"I bought a second home in Nevada- can i still add the mortgage interest  in my CA tax returns?"

 

If this mortgage interest is deductible on Schedule A on the federal return, then it is deductible in CA.

 

Actually, even if the mortgage interest has been limited on Schedule A because of the changes in the Tax Cut and Jobs Act (TCJA) of 2017, it still may be be deductible in CA because CA never adopted the changes by the TCJA. 

 

Enter it on your federal return and let TurboTax figure it out.

 

@vdelatorre1

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