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

Year-End Tax Tips

Learn more about money saying year-end tax tips and get tax answers at H&R Block.

Child Support Tax Deduction

If you are paying child support for your children, but they don't live with you, can you claim them as dependents? Get Tax Answers from H&R Block.

Other Itemized Deduction Qualifications

Discover what items qualify as other itemized deductions with help from the tax experts at H&R Block.

File Taxes – Ways to File Your Tax Return

Filing taxes? H&R Block has easy ways to file your taxes, including filing online, using professional tax software or at our tax office locations.