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primary residence - intrest tax break

i am a resident of NJ and presently want invest in real estate. I have been struggling to get something decent for my budget and finding it hard. considering i am single, i was investigating the option of buying a property in southern state like georgia or north carolina due to family ties in those areas. I would be mostly not renting the property. I wanted to know if I can still avail of the primary residence tax break on the interests that i incur on paying the mortgage for this property. If there is a workaround or any rules guiding this, i would appreciate any guidance or help or direction on this matter. I feel like i am loosing out on the tax break and wanted to avail of it at the earliest this year. thanks once again Mumbai

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Reply to
browndesi
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Interest is deductible if paid for the mortgage on a first or second home. Note, the homes need not be the same each year. There is also a limit on the total debt. $1,000,000 plus $100,000 in home equity. If your mortgages total more than $1.1 M, then you have to prorate the deductible amount. Another problem you might find is that many lenders will charge a higher rate and/or require a larger down payment on a property that is not your primary residence. Overall, more information is required from you to answer your question completely. You should check with your own tax advisor. Gary

-- E-mail to the above address is rarely read. If you want to contact me directly, please send an e-mail to: gary at gdgoodman dot com.

Reply to
Gary Goodman

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