mortgage interest

My friend has a house in Albuquerque, NM in which he and his wife lives. He also has two houses in Texas which are occupied by the children. They don't pay any rent just the utilities. There are Mortgages on all three houses which my friend pays. How many of the mortgages can he deduct on his tax return?

Thank you for your wisdom, Marion

========================================= MODERATOR'S COMMENT: He can deduct, within limits, the mortgage interest he paid on the main home and one second home. And can deduct the real estate taxes he paid on all his properties.

Reply to
Marion1E
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snipped-for-privacy@comcast.net posted:

The moderator's comment contains all the wisdom normally available.

There is one faint possibility that the third home's mortgage payment might be deductible. _IF_ one of the two homes in Texas had a mortgage which was taken out on or before October 13, 1987, it could be considered grandfathered debt, and might also be deductible on that basis.

(See Pub 17, Interest Expense, Home Mortgage Interest, and Amount Deductible, which lists 3 categories including the "grandfathered debt" cited above.)

Bill

Reply to
Bill

Categories of mortgage debt have nothing to do with the two home rule. You are limited to mortgage interest on a main home and one other home. Grandfathered debt is relevant to the amount of interest that is deductible.

Reply to
Alan

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