Question:

What homes qualify for second home mortgage tax deduction?

Answer:

Homes qualifying for second home mortgage tax deduction to be listed as itemized deduction on Schedule A of your tax return don't necessarily have to be houses. A house, a condo, a recreational vehicle, a yacht, manufactured home having proper living accommodations such as a bathroom and sleeping and cooking facilities will do.

If you don't live in your second home, it still qualifies for mortgage tax deduction. However, if you rent it, for the property to be eligible for second home mortgage tax deduction, you have to have lived in it for at least 14 days, or 10% of the days you rented it throughout the year. If you have other homes, you can't use them all for second home mortgage tax deduction purposes, as only the first and second home qualify. However, third, fourth, etc. properties may take a turn as a second home every year.

A home under construction also qualifies you for second home mortgage tax deduction for a period of two years, if you live in it when it is ready. If your home was destroyed in a natural disaster, you have to rebuild it to be eligible for mortgage tax deduction.

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Common misspellings: mortage and morgage