Can I Deduct a Second Home Mortgage?

Owning a vacation home or second property comes with its own set of tax rules, including some favorable treatment for mortgage interest. You can deduct mortgage interest on a second home along with your primary residence, subject to the $750,000 total mortgage debt limit that applies to both homes combined. The property must qualify as a second home, which generally means you use it personally for at least 14 days a year or 10 percent of the days it is rented out, whichever is greater. If you rent the property out more heavily, it may be treated as a rental property for tax purposes instead. Whether your second home is a cabin, condo, or boat with sleeping and cooking facilities, it can potentially qualify.