Add-on Question...

[SyrCinderella]

Can you deduct the interest paid on your add-on contract (using Disney financing), since it is two separate loans? I have read you can deduct the interest on the first contract as a second home, but wondered about it for an add on.

Yep, just had our master deed recorded on May 11th and already have addonitis....

 

[Doctor P]

This is actually not an easy question and you will probably not get a consistent answer from CPA's. I would check with your own tax advisor and see what he or she says for your own personal situation. Some have argued, and I think I would subscribe to this in general, that if you only have one master contract and you add on to that master contract (regardless of resort) that it remains a single vacation home interest, but this is actually a gray area. We never financed any of our add ons, so I can't even help from personal experience as to how I treated it.

 

[quentina]

I do...they send us the form with the interest paid on it. Since it is deeded, we do it. It is really no differant than our home equity loan.

Noone has ever told us anything about only using the main contract.

Kim