Need some advice.
My wife and I recently purchased a summer residence and have kept our primary residence as our winter home. We have a $75000 mortgage on our primary residence which has been appraised at $350,000. We bought the summer residence last week for $300,000 and secured a mortgage of $150,000. I understand mortgage interest on both the primary residence and the summer residence are fully deductible for FIT and neither would be alternative minimum tax items. The owner of the adjacent unimproved lot to our summer residence has offered his lot to us for $65000 and has offered owner financing on a 5 year balloon for $55000. My question is: Will the interest on the mortgage on the contiguous lot be deductible as well even though a different lender is involved?. In other words would the IRS consider both the summer residence and the contiguous lot as one residence although not the primary residence? I would be most appreciative of a response.