Two brother A and B bought a home together 50/50, and paid ALL expenses and the mortgage 50/50.
A uses it as his home. Bu uses it as his second home, when he visits.
Total mortgage on the co-owned home = $1million. Total 2021 interest = $32,000
A has one other home (primary residence) , bought in 2019 with mortgage $750K.
Section 163 limits the interest deductions to $0K for A and $12K for B.
(32K / 2) * (750K/1million) = 12K
B has no other home .
Based on the above facts, is B's mortgage interest deduction really limited to 12K?
Just checking in case I missed something.
I come here for kudos and IRonMaN's jokes.
