Q: We are thinking of buying a small condominium for use as a second home. Would we be able to write off all of the mortgage-interest payments on the condo, just as we do the interest payments on the mortgage for our primary home?

A: Yes. If you’re like most homeowners, you’ll be able to write off all the mortgage-interest payments on both your current mortgage and a new loan for the condo.

The Internal Revenue Service allows most taxpayers to deduct interest on a combined $1 million of mortgage debt used to purchase a primary residence and second home. In other words, as long as the two loans together don’t exceed $1 million, you probably can write off all of your interest payments for both properties.

Most second-home buyers fit well under the $1 million cap.

But you should consult with an accountant before buying the second home anyway, because the purchase likely would make you eligible for several other deductions too.

Without a doubt, you most certainly need a tax professional’s advice if your second-home purchase would push you above the $1 million debt threshold or if you plan to rent the vacation property out to others when you’re not using it yourself.

Q: When real estate prices or stocks are rising, they call it a “bull” market. When prices are falling, it’s called a “bear” market. Why?

A: The two colorful terms, which have been used for more than a century, are derived from the way each animal attacks.

When a bull charges, it puts its head low to the ground and thrusts upward with its horns to throw its target high into the air – not unlike the way “bullish” buyers push prices higher.

But when a bear charges, it slaps downward with its paws in an effort to knock its opponent to the ground. Alas, there are a lot of real estate bears out there today who are driving home prices lower in several parts of the nation.