Can mortgage interest from two homes be combined in filing our income tax?

Q: We have mortgage interests from our primary home and another from a rental property. Can they be combined in filing our income tax for 2003? —Augustine, Medford

The following answer was provided by Nick Puniello, CPA, Puniello & Company, PC.

A: You must report the interest expense separately. The interest expense on the mortgage for your residence is an itemized deduction and is reported on Schedule A. The interest on the mortgage on your rental property is reported on Schedule E along with the rental income and other expenses related to the property. For Massachusetts state tax purposes itemized deductions are generally not deductible. So you do not get a tax deduction on your state return for the home mortgage interest. Since the interest on the rental property is reported on Schedule E you would be getting the deduction for Massachusetts state tax purposes.