Question

I am considering purchasing a second home. What qualifies as a second home?

Answer

 

To determine what qualifies as a second home, some basic amenities must be available. Amenities must include sleeping, cooking, and toilet facilities. Any of following can qualify as a second home:

    • House
    • Condominium
    • Cooperative
    • Mobile home
    • House trailer
    • Boat
    • Property similar to the above properties

If you are purchasing the second home to use as a rental property, you may qualify for tax deductions for your expenses. Deductible expenses on your second home may include the following:

maintenance
insurance
HOA fees

If you are planning split use of the property – meaning as a rental property and for personal use – you will have to calculate the amount of time (or number of days) the property is used as a rental and the amount of the time (or number of days) you use the property for your personal use. This calculation will help you determine the portion of your expenses that may qualify for a tax deduction. Only the rental expenses will qualify for a tax deduction. You will need to use Form 1040: Schedule E

 

 

Related Topics

Related Resources

Is there a file tax return for deceased family member obligation — My mother died this year, do I file a final tax retu

Do you need to file a tax return for someone who is deceased? Learn more from the tax experts at H&R Block.

Tax Filing for Qualifying Widow or Widower

Learn about your tax filing status for a qualifying widow or widower with our articles from the tax experts at H&R Block.

529 Tax Deductions & End-of-Year Savings Options

As end-of-year approaches, taxes owed can become a major headache. Plan ahead by considering 529 Tax Deductions and other end-of-year savings options.

I have a question about childcare provider taxes. If I’m a childcare provider without a W-2, how do I file taxes for chi

If you are a child care provider without a W-2, how do you file your taxes? Learn more from the tax experts at H&R Block.