If main residence was used to secure $250,000 mortgage for vacation home. What changes can be made to allow full interest to be deducted? This happened more than 90 days ago. New mortage on vac home would no longer be acquisition mortgage.
I think you are limited to $100,000 home equity indebtedness out of the $250k since the debt is secured by the first home. That assumes that the total outstanding debt on the first home is not more than 1.1 million.
What was the vacation home mortgage used for? Was it to buy the vacation home? I think the answer also depends on the use of the funds.
Yes licpa, I believe you are right, which is why I am looking for new ideas. I believe that to switch the mortgage to the vacation home now would not qualify since we are beyond the 90 days to qualify as an acquisition cost.
I was hoping that I was missing something, or wrong about my understanding of the rules.
i don't think there is any way around it since the main home secures the debt. if the taxpayer was also going to do some major renovations to the main residence with other funds, that may increase the acquisition indebtedness allowed.
