two mortgages on same property for tax deduction

The $1M debt limit is per property, not per owner.

There was a recent case (which I can't find now) where two unrelated owners tried the technique you describe, and were shot down by the IRS.

Actually, it's both. An individual can't deduct interest from a second $1 million mortgage (as in on a second property or a second mortgage on one property).

Good morning chaddey,

Not sure if I'm reading correctly:

1. Do you propose that each individual get his/her own mortgage equalling half the purchase price?

2. Or do you mean that you will both be on the new mortgage equalling $1m as co-borrowers and you're putting 50% down payment?

The first scenario is not permissible under lending guidelines; the second is (under ECOA a Lender may not discriminate based on marital status).

As for tax advice, I recommend you consult with your tax professional.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

Thanks for everyone's feedback. @tcurranmortgage; I was wondering if the first scenario was permissible.

This brings to mind a question I had, and might bring the answer to chaddey's question.

Can a condo *unit* ownership be structured as Tenancy in Common?

And can each Tenant in Common then make his own mortgage arrangements (which I believe would be permissible on a whole house, rather than condo unit)?