If I purchase a house with a friend and it is both our second homes is any of the mortgage tax deductible?

I will be living in the second house when I am working at my job and go to my original home for my days off.





If it is not tax deductible, is there any tax breaks for being forced to move away from my home because the economy is much worse there than the average (according to media and government reports).If I purchase a house with a friend and it is both our second homes is any of the mortgage tax deductible?
Taxpayers are allowed to deduct mortgage interest on up to two homes used as residences at the same time. If you purchase a second home with another person, then you can deduct the mortgage interest you actually paid. Usually this would mean you each deduct half.





Real estate taxes are deductible on all real estate you own. If you own real estate with another person, divide the taxes according to the percentage of ownership. You can only deduct taxes you paid on your percentage. If you are equal owners, usually you would each deduct half.





It appears from your question that you may be using the second home as your primary residence. Are you going to sell the first home within two years of your move? Since you had to move away (more than 50 miles) because of a change in employment, you are eligible to exclude capital gains on your first house if you sell it. You can exclude up to $250,000 ($500,000 if married) of capital gains. If you have lived in the house for less than two years, a pro-rated amount is excluded because of the change in employment.





If you have moving expenses to your new place of employment, and this is going to be your permanent job, you can deduct those expenses as an adjustment to income. Use Form 3903 to figure moving expenses.





If your new job is not expected to last for more than one year, you may have a ';temporary assignment'; and additional expenses may be deductible, such as travel between your first and second homes. These expenses would be deducted on Schedule A as miscellaneous deductions using Form 2106 if you are an employee.If I purchase a house with a friend and it is both our second homes is any of the mortgage tax deductible?
For a first and a second home, mortgage interest and real estate taxes are deductible if you itemize.
Mortgage interest and property taxes for a primary and second home are fully tax deductible.





If you move due to a job change and your new home is more than 50 miles further than your previous commute you can deduct the cost of moving. File Form 3903 with your return to claim that.





There is no deduction for traveling between the 2 homes simply for your personal convenience. You can deduct unreimbursed travel expenses required by your employer but your situation doesn't qualify for that.
Don't even think of buying a house with a ';friend';. At best, it will result in the end of the friendship.