topic Second home in Deductions & credits

Second home

bmcmil13 — Thu, 17 Feb 2022 01:41:54 GMT

If our son lives in our second home as his primary residence and only pays utilities, no rent, can I still deduct the mortgage interest and property taxes, without receiving any rental income?

Re: Second home

xmasbaby0 — Thu, 17 Feb 2022 02:00:48 GMT

You can always enter mortgage interest and property tax for a second home that you own. There is a cap of $10K for the amount of state and local tax you can deduct. You cannot enter anything about rent or depreciation or repairs, etc. for the house since you are not charging rent.

Re: Second home

bmcmil13 — Fri, 18 Feb 2022 23:36:00 GMT

Thank you.

And a follow up

So do I just select Second Home in Turbo tax, even though it says "You must live there a certain amount of time"?

If you select Other and Rental Property which takes you to Schedule E.

Re: Second home

Opus 17 — Tue, 22 Feb 2022 16:46:09 GMT

@bmcmil13 wrote:

Thank you.

And a follow up

So do I just select Second Home in Turbo tax, even though it says "You must live there a certain amount of time"?

If you select Other and Rental Property which takes you to Schedule E.

I haven't looked at this specific page, trying to enter a 1098 for a second home, but if it is asking what I think it should be asking is, is this property "personal use." To deduct the expenses on a second home on schedule A, it must be personal use, and if it is partly personal use and partly rental, you must split the expenses between schedule A and schedule E. In this case, allowing family to live there makes it personal use even though you aren't personally living there.

Re: Second home

Mike9241 — Tue, 22 Feb 2022 18:37:45 GMT

you do not report the rental - no schedule E. the taxes and mortgage interest go on schedule A and are subject to limitations.

Re: Second home

bmcmil13 — Sat, 26 Feb 2022 00:07:16 GMT

Thank you