What is the Tax Structure for a Second Home that is Rented Out and Used by the Owner?
A second home that is rented out for more than 14 days a year and is used by you, the owner, more than 14 days a year fits into a specific tax structure. You can deduct mortgage expenses and taxes only from the portion of the year that the house was personally used. For the other portion of the year, you can, as a landlord, deduct only the operating expenses. Keep in mind that lending the house to family members or charging them a rate below the market value counts toward the 14 days of personal use. What is the Tax Structure for a Second Home that is Frequently Rented Out? If you personally use the second home less than 14 days a year and rent the house out more than 14 days a year, the home follows rental house tax guidelines. Various operating costs are deductible (advertising, cleaning, maintenance, insurance, repairs, trash removal, etc.). The rental income is taxable, minus the expenses incurred to get the property ready for rent and those needed to maintain the property as a ren
