What you describe is not a rental or any other form of business property, as you are not utilizing it in any way to produce income of any type. You own a second home, and that's it. Based on the information provided, nothing concerning this property is reported on SCH E or SCH C. The only deductions you "may" qualify for (depending on your income) are property taxes and mortgage insurance as a SCH A itemized deduction.
Should you actually start renting the property in the future, then you will convert it from personal use property to residential rental property. But with family living in the house, if you are not charging the FMRV then it's still personal use.
