What tax deductions can be taken on a second real estate property that is not a rental property? Mileage to review or repair, taxes, etc.??

Forum|Forum|7 years ago
June 6, 2019
1 reply
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We own a second house in which a relative lives who is not liable for any federal or state taxes and does not pay any rental income to us. Are there any tax deductions that we can take on this property besides property taxes, etc.?? For example, cost of mileage to travel for second home repairs, review, service, etc.??

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MichaelL1

Level 15

Your property taxes and mortgage interest are deductible as a 2nd home.

IRS only allows deductions for the costs you are asking about (mileage, repairs, etc) if the property is income producing property - a rental.

Then you have to charge rent at Fair Market Value and then expenses that are ordinary and necessary to produce the income on the rental are deductible.

If you do make major improvements on this, keep track of them, however, as if does become a rental in the future these additional costs will increase the cost (or basis) of the house.