A couple of new points as one looks at mortgage interest, and for purposes of this interest paid on a boat to be used as a second home is mortgage interest.
1. There are now limitations on the amount of debt that can be considered. That current amount is $750,000. That is the total of all mortgage debt (amounts prior to 2017 may be up to $1 million).
2. Some take out home equity loans on their homes to buy boats. That interest would not be deductible. Only Home Acquisition Debt is deductible and any new financing isn't unless used in some way on the home. Now a loan on the boat would be deductible, subject to the other limits. Home Equity Loans just no longer work.
1. There are now limitations on the amount of debt that can be considered. That current amount is $750,000. That is the total of all mortgage debt (amounts prior to 2017 may be up to $1 million).
2. Some take out home equity loans on their homes to buy boats. That interest would not be deductible. Only Home Acquisition Debt is deductible and any new financing isn't unless used in some way on the home. Now a loan on the boat would be deductible, subject to the other limits. Home Equity Loans just no longer work.