What is deductible ona second mortgage - Posted by robday (NH)


#1

Posted by Jimbob on October 28, 1998 at 14:06:47:

Rob,

The interest on the second mortgage will be deductable up to 100% of the fair market value of the property, any mortgages that exceed 100% of the fair market value of the property, the interest is not deductable. Thats where a lot of people taking out those 125%LTV mortgages are going to get nailed.

As for the closing costs, the points paid usually have to be amortized over a 5 year period but you should check with a CPA in your area to make sure.

Jimbob


#2

What is deductible ona second mortgage - Posted by robday (NH)

Posted by robday (NH) on October 28, 1998 at 12:57:55:

Folks,

I am in the process of acquring a second mortgage on my home. Are any of the closing costs deductible for tax purposes? It will serve as the mortgage for an investment property, which I will re-finance in about 6-7 months. Any input would be greatly appreciated.

Thanks,

Rob