4

In 2010 my residency changed from the home I own to a home I'm renting, but I owned the mortgaged home all year. Is the deductable amount of mortgage interest paid pro-rated based on the date I moved? This is unclear to me (or I'm optimistic I can claim the full amount of interest for 2010) because I often see the principal residence rule using the phrase "majority of the time". I spent 75% of the year in the mortgaged house and 25% in the rental.

An IRS pub number, section, and paragraph would be greatly appreciated!

  • Do you still own the mortgaged home? – MrChrister Feb 2 '11 at 18:17
  • @MrChrister yes – mghicks Feb 2 '11 at 19:20
  • After checking IRS Pub 936, irs.gov/pub/irs-pdf/p936.pdf, this counts as a second home not rented. The mortgage interest is fully deductible whether it is my primary residence (main home) or not. I did not know mortgage interest on a second home was deductible! – mghicks Feb 2 '11 at 20:09
3

http://www.irs.gov/publications/p936/ar02.html#en_US_2010_publink1000229891

If you still own it, you get to deduct all of it.

In my taxes I did online with TaxAct, it asked if I lived there or not and it just mattered which form it filed for me. With having tenants it was a 'business' form and I assume it would be a standard schedule A for personal. Either way the deductions are still mine to take.

  • I commented above before I saw your answer. Thanks very much! – mghicks Feb 2 '11 at 20:17
  • @mghicks - also answer your own question if you find the answer first. – MrChrister Feb 2 '11 at 20:20
1

Very simple. If it wasn't rented, it's deductible as a schedule A home mortgage interest. If it was rented, you go into Schedule E land, still a deduction along with any/every expense incurred.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.