Mortgage Interest Deduction in California if not 100% of funds were used for secured property

[gomce62]

On my Federal Return, I understand I can only deduct the portion of my home mortgage interest that was used for the property in which the loan is secured.   For California, can I deduct 100% of the interest, or does the same Federal rule apply?

Here is the background.   We took out a 400K loan on our primary house that was paid off to purchase a 2nd home and used ~20k to fix things on the primary house with the remaining 380K for the 2nd home.  If interest for this year on Form 1098 from the bank was 10K I understand on Federal we can only deduct interest on the 20K portion of the loan.   What about on Californai Return can we deuct all 10K or only the same portion on the 20K?

[MonikaK1]

Loan interest for personal residences is only deductible if it is paid to acquire or improve the residence, and if it is secured by the residence, the same as on the Federal return. If it's a personal, unsecured loan (not a mortgage), then the interest isn't deductible. Some California utility company loans are also interest-free.

Enter all of your mortgage interest in the Federal section of TurboTax. The California section will ask questions to determine whether any additions or subtractions from Federal amounts are needed. For example, California has a higher loan balance limit than the Federal return.

See this Franchise Tax Board webpage for more information about California differences for itemized deductions.