Second home interest deduction

[JGH59]

I bought and sold a second home in 2024.  My primary home does not have a mortgage.  The purchase was 6 months prior to the sale of the other second home.  I assume that the interest is only deductible from one of the mortgages during the time both second homes were owned.  Do I enter a lesser amount than indicated on the 1098 for one of the homes, ideally the one with the least interest per month?

[pk]

@JGH59 , IRC section 163 (h)3(B) and following  subsections deal with  acquisition indebtedness,   interest thereon,  qualified residences  etc.  The use  always is  aggregate  indebtedness ,  main-residence and ONE other chose by the taxpayer.  Thus  for the year 2024   interest deduction is on aggregate indebtedness of 750,000 for a joint filer or 375,000 for  single or MFS filer.

Therefore you get to choose which  2nd  home is  part of your qualified residence.

My reading also does not preclude  each MFS filer having  a separate / different 2nd home.

Perhaps , you should consult a tax professional especially if the  interest deduction warrants the cost/effort.

[JGH59]

My question is not a qualification question on whether the second home interest is deductible.  Both homes qualify based in use.  It is a question on how to get TurboTax to support the entry of the 1098 information without combining the two separate mortgages when they are going to be independent of each other for specific time frames.  Turbotax needs to recognize that only one second home is allowed for a designated time frame and allow the allocation of the mortgage interest stated on the 1098.

[JGH59]

Sorry, the previous reply was for a followup question/issue I entered today.

[pk]

@JGH59 , [personally and years ago, I have had similar situation and used the  back-up sheet mechanism to  enter the relevant interest costs, used the max  amount of loan as a single entry.  Thus my bnack up / detail sheet would show  

Prop #1  -- address --- 01/01/xx till  06/30/xx  ------- 3527

Prop#2 ----- address --- 07/01/xx  till 12/31/xx -------- 4825 

                                               Total amount          8352 

this will then transfer to right line of Schedule A or schedule-E as the case may be .

I was using  Windows TurboTax Home & Business.

Does this help with your issue ?

[JGH59]

Yes it does.  I had hoped TurboTax would support it directly but I do understand utilizing back detail as an alternative.  Thank you.