Special Trivia Question for 5/5/26 (Tax Impact of Home Purchase)

If you buy a (second) vacation home, how much mortgage interest can you deduct?

A. Nothing more. You can only deduct interest on the primary home.
B. Both the primary and secondary homes share the $750k limit, which you apportion between both loans.
C. You get a separate $750k limit for the primary and secondary homes.
D. When you have more than one home, the limit increases from $750k to $1M.

The $750k limit is for all home acquisition debt, which is defined as debt you took on to acquire a first or second home.

IRS Publication 936 goes into all the nitty gritty for figuring out how much mortgage interest you can deduct in these atypical scenarios.