Interest and expenses will be deductable. That being said, purchasing a vacation home may not be the best idea for generating positive cash flow. I looked into vacation rentals a while back, and in most places in the country it was difficult to cover the mortgage with rental payments. Just food for thought. [addsig]
Until it's outright paid for, it will indeed just be an expense. 100K x 3 could go a long way in putting a dent in that mortgage.
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Interest and expenses will be deductable. That being said, purchasing a vacation home may not be the best idea for generating positive cash flow.
I looked into vacation rentals a while back, and in most places in the country it was difficult to cover the mortgage with rental payments.
Just food for thought.
[addsig]
Until it's outright paid for, it will indeed just be an expense. 100K x 3 could go a long way in putting a dent in that mortgage.