by 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 C. Martinez is a Real Estate Broker, Commentator, and an Advocate for Made in the USA. He may reached at http://brokerhollywood.com or (323) 250-3770
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Sam C. Martinez is a Real Estate Broker, Commentator, and Advocate for Made in the USA.