Investors & landlords

Three separate questions:  

Q1:  Will we still get the advantage on the second house mortgage and property tax?  Yes to mortgage interest, and probably not to property tax.  As long as the property is a second home (no more than 2 houses can be claimed), then you may claim both of these; however, your SALT deductions are capped at $10,000, which includes real estate taxes.  Given that you are in a higher tax bracket, it is likely that you are already over the SALT threshold and likely see no additional benefit.  This Help Article provides additional information:  Can I deduct mortgage interest on a second home?

Q2:  Repairs cannot be claimed for any tax benefits at the time of doing them, provided that the home is "personal use".  However, the money spent can effectively increase the basis (amount invested) in the home, which can assist your taxes when you sell.   For these expenses to have potential deductibility, they must be considered improvements (which increase the value of the home) and not simply repairs (which restore the home's original value).  This second Help Article has additional information on this:  Can I deduct home improvements on my tax return?

Q3:  It depends.  If you are talking about your primary residence, then you will likely qualify for the Sale of Home Exclusion, which allows you to exclude up to $250,000 of profit from a home sale, (and $500,000 if married filing jointly).  To qualify as your primary residence for this exclusion, you have to have lived in the house (as your primary residence) in at least 2 of the last 5 years.  However, if this is your secondary residence, you are subject to capital gains treatment.  In the 24% tax bracket, you will be subject to a 15% capital gains tax on the profit of the sale.  (Keep in mind Q2 above, as qualified improvement expenses will add to your basis in the home and lower the profit, or gain, on your sale).  With your income, you could also face the Net Investment Income Tax (NIIT) (additional 3.8 percent tax).  And, of course, your state will also tax you (you will want to see how your state treats capital gains).