According to the Tax laws, use of the second home is “personal” if on any day (or even a part of a day) it is used by anyone who owns an interest in the property, or their relatives. The property is also considered “personal” if used by any other person who does not pay a fair rent. Vacation homes include homes, apartments (such as condominiums and cooperatives), and even trailers or boats. However, for a boat to be considered a “home” it must have sleeping, cooking and toilet facilities. If you rent out the property and never make personal use of it, it is considered rental property and all appropriate deductions are available to you. On the other hand, if you never rent out the property, but enjoy it for yourself and your family, it is treated as a second home and again you can deduct real estate taxes and mortgage interest — subject to any limitations imposed by law, such as the Alternative Minimum Tax (AMT) rules. Investing in a Vacation Home for Pleasure and Profit

click here for article

search for :