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
Spending your time volunteering is a great way to give back. Learn more about the tax benefits for volunteer work when filing your taxes at H&R Block.
Head of household is a filing status for single or unmarried taxpayers who have maintained a home for a qualifying person, such as a child or relative. This filing status provides a larger standard deduction and more generous tax rates for calculating federal income tax than the Single filing status.
Tax preparers can have various designation and specialties. Learn how different types of tax preparers at H&R Block can help you in person or virtually.
Are political contributions tax deductible? Before signing a check, learn the difference between charitable giving and political donations at H&R Block.