Can I deduct the mortgage interest on a timeshare?
Yes. You can deduct the mortgage interest on a timeshare if these are all true:
You own the timeshare — you aren't renting it.
You're treating it as your second home.
You're legally liable for the debt on the home.
The debt is secured by your main home or a second home that's not rented out.
If you have more than 1 second home, you can only deduct the interest on 1 of them. You must choose which to treat as your second home.
If more than 1 person owns the home and pays mortgage interest — other than a married couple filing a joint return — each person can deduct the interest. This is true for each person legally liable for the mortgage.
If the bank issues Form 1098 with 2 or more homeowners' names on the form, special rules apply. Each homeowner can only deduct the mortgage interest and real estate taxes paid using the person's own funds. Each homeowner should include a statement with their respective return. The statement should explain each person's share of the total interest shown on the Form 1098.
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This advice is for general information purposes only and may not apply to you. Every tax situation is different. This is not intended to be legal advice. Taxpayers should consult an H&R Block Tax Professional regarding their individual tax situation.