We have a primary home w/ a $550K mortgage remaining (bought in 2015 / loan origination date)
We have a vacation home w/ a $430K mortgage remaining (bought in 2021 / loan origination date)
In 2022, we renovated the vacation home and took out a $80K home equity line.
Property taxes on a primary home is $10K
Property taxes on a vacation home is $5K
The plan is to rent out the vacation home for as much as we can in 2023 but realistically, it will probably only be for a few weeks during the spring/fall/summer.
We plan on being in the home for a cumulative 30-45 days throughout the year for personal use.
As far as rental income received, can I use mortgage interest and property taxes as an offset to to this rental income (even if the interest and tax goes over the $1M / $10K cap for mortgage interest and state taxes respectively)?
How can I account for depreciation if I plan to be there 30-45 days a year and realistically expect the home to be rented about 8-10 weeks a year (and the rest of the time, it will be idle).
I'm planning for 2023 already 🙂
