Tax Deductions For Vacation Homes
If you own or intend to purchase a vacation home and are considering placing it into the local rental pool, you may be eligible for tax deductions on your rental property. Varying deductions apply depending on how much you use the property and whether or not you rent it out. Read further for tax deduction specifics with highlights from the National Association of REALTOR's article written by Donna Fuscaldo . Is Your Vacation Home A Vacation Home? If you purchased your vacation home exclusively for personal enjoyment, you can generally deduct your mortgage interest and real estate taxes, as you would on a primary residence. Use Schedule A to take the deductions. The IRS allows you to rent out your vacation home for up to 14 days each year without paying taxes on rental income. You may be able to deduct any uninsured casualty losses as well, though you can't write off rental-related expenses. (More below.) If the home is rented for more than 14 days, you must claim the inc...