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Purchas of Vacation Home

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B

bugszie

Guest
What is the name of your state?NM

Our daugther lives in SF, CA. She does not make enough income to purchase property in that area. However, she wants to invest in a vacation home in NM. She want to invest with her Aunt, who would live in the property. She would need to borrow money for this joint venture, but her Aunt would not. Her Aunt would be the care taker of the proptery. The property would not be rented out.

1. Can she take the interest from the mortgage off her Federal taxes as a secondary or vacation home, even though she does not own property in CA?

2. The title would be in both their names, does this complicate the issue any?
 


abezon

Senior Member
She can deduct the interest *she* pays. The total interest deducted by her & her aunt cannot exceed the total interest the bank receives. She can also deduct any property taxes she pays.

If only she borrows money, it will be easier if her name/SSN is listed first on the loan.
 

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