A husband and wife own a home together since 1991. Mortgage interest and real estate taxes where paid on this property in 2010. The wife bought a second home in her name in April 2010. She started living there in July 2010. Mortgage interest and real estate taxes where paid on her property in 2010. Can this husband and wife file a joint return? If yes can they claim the mortgage interest and real estate taxes paid on both properties?

They are not formally separated or divorced. They have 2 dependent children less than 17 years old. The husband salary was ~95K and the wife salary was ~85K.