I am considering purchasing a second home. What qualifies as a second home?
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:
- Mobile home
- House trailer
- 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:
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
Do you need to get an EIN for your small business? Learn more about the EIN application process and get tax answers at H&R Block.
Are military moving expenses tax deductible? Learn more and get tax answers at H&R Block.
Do you need to complete Florida taxes? Find out which Florida tax forms you may need to file your taxes this year, with help from H&R Block.
If you claim your child as a dependent, can you deduct their student loan interest on your taxes? Learn more from the tax experts at H&R Block.