Second Home Tax Deduction

| February 19, 2013

Second Home Tax  Deductionby Sam Martinez, (323) 250-3770.

Vacation home tax deductions have guidelines that can be a little complicated.  There are a few rules that will help you figure out what you can claim.

1)  Make sure to keep good, accurate records about when you use your second home.

2)  If you are not renting your vacation home out for more than 14 days a year, and if you are the only one using the vacation home, then you can deduct the mortgage interest and real estate property taxes on IRS Form Schedule A.

3)  If you rent our your vacation home more than 14 days a year, and you use the home less than 15 days a year or 10% of the total rental days (which ever is greater), then the vacation home is treated like a rental property.  Those expenses get deducted on IRS Form Schedule E.

4) If you rent your vacation home for part of the year, and you use it yourself for more than 14 days, then you must keep track of the income and expenses to proportionately divide them based on how often you used the property and how often you rented it out.

That is basically the short and sweet of it.  It is strongly advised that you seek tax advice from a licensed tax professional to see how your vacation home applies to your tax filing.

Located in the Hollywood Hills area of Los Angeles, Sam Martinez is a Real Estate Broker, Commentator, and an Advocate for Made in the USA.  He may reached at or (323) 250-3770

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Category: Best Realtors in Los Angeles, Tax

About the Author (Author Profile)

Sam Martinez is a Real Estate Broker, Commentator, and Advocate for Made in the USA.

Comments (3)

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  1. Sire says:

    I used to have a vacation home that I used to rent out during the summer and we used to go there as often as possible. Unfortunately I used to work for myself in those days which meant we couldn’t go there as often as we liked.

    The problem we had was the maintenance which I used to do myself. Unfortunately it got to be too much and I sold it. Too bad too, because there was a boom a couple of years later and the house almost doubled in value.

    As far as tax goes, being in Australia and because we rented it out we kept all the expenses and claimed for it against any income we accrued.

    Loved the photo of the house too. Very impressive.

  2. Now you can trade down to a less expensive house and use the profit from the sale of the larger place as a down payment on a second home.

  3. Mitch Carson says:

    Great Article. As a Newbie Blogger, I gained so much knowledge! Thank You so much for sharing all these valuable Information, Sam. Hoping that a lot of people will read this and learn like me.