Second Home

A residence that is not one's Principal Residence. A taxpayer may deduct interest on two personal residences provided certain occupancy requirements are met.

A residence that is not one's Principal Residence. Under current tax law, a taxpayer may deduct interest on two personal residences.
Example: Senator Goodwill maintains his principal residence in Hometown, Iowa, and a second home in Washington, D.C. He is allowed to deduct interest paid on both as an itemized deduction.