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You can deduct mortgage interest on both your main home and one other qualified residence each year, but all the mortgages on both homes must be combined for purposes of the dollar limits on deductible loans.
If more than one person owns the home (for instance, you purchased a vacation home jointly with your brother), each of you can deduct your proportionate part of the interest.
A "home" for tax purposes can be a house, condominium, cooperative, mobile home, motor home, timeshare condominium, or boat. At a minimum, the "home" must contain sleeping space, a toilet, and cooking facilities.
If the home is a condominium, you can deduct interest paid on a mortgage you take out to purchase your individual unit. If there is a blanket mortgage over the entire property, you can deduct interest on the portion of the blanket mortgage that applies to your unit. Similarly, if you own a co-op, you can deduct interest paid on a mortgage to purchase shares in the building that pertain to your individual unit; you can also deduct interest paid or incurred by the corporation on loans taken out to acquire, construct, alter, rehabilitate, or maintain the co-op buildings or land.
Your main home is generally the place where you spend the most time.
Special rules apply to: