My mother sometimes helps to pay the mortgage. Which would be more beneficial - rental property or 2nd home?
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It is unlikely that you could legally classify it as a rental, unless your mother were paying fair market value on the rent. The IRS considers it a personal use dwelling under the following conditions (IRS Tax Topic 414):
A day of personal use of a dwelling unit is any day that it is used by:
When you treat it properly as a second home, you can deduct mortgage interest and property taxes on Schedule A, just like you can for your primary residence.
Do you have to claim the amount the family member contributes toward 2nd property bills?
I think you are saying that you have a second home and a family member is contributing to the house payment, mortgage interest and real estate taxes. I assume that only you are an owner of the real property and the other family member is not?
If this is the case, you would be able to deduct that portion that you paid on form 1040 Schedule A. That portion the other party paid would not be reported since that party is not an owner of the real property.
See this TurboTax help. See the last option.
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