topic purchase second home in Deductions & credits

purchase second home

qnwa01 — Wed, 11 Feb 2026 05:45:47 GMT

My adult son and I purchased a home with each having 50% ownership. This will be his second home and will be my second home. I will not be charging rent, nor will I be living there. How do I report the adjusted basis for this home?

Re: purchase second home

Mike9241 — Tue, 19 Mar 2024 04:02:22 GMT

you don't report the basis of the property anywhere, but keep track of it because when it's sold there may be a need to report it. You are allowed to deduct your share of property taxes and interest that is paid. points on the mortgage would have to be amortized over the life of the mortgage. The deductions would go on schedule A and to be of tax benefit, the total itemized deductions would have to exceed your standard deduction.

Taxes are limited to $10,000 on schedule A.

Re: purchase second home

qnwa01 — Wed, 20 Mar 2024 00:03:47 GMT

Thank you for your response. I previously owned 2 houses which are not rental properties. Since this is 1/2 ownership of a third non rental home, am I allowed to seek 1/2 credit for property taxes on this house as well?

Re: purchase second home

DawnC — Wed, 20 Mar 2024 00:24:44 GMT

Yes, if you paid the taxes. If you itemize your deductions, you can deduct the property taxes you pay on your main residence and any other real estate you own. The total amount of deductible state and local income taxes, including property taxes, is limited to $10,000 per year.

Can I Deduct Real Estate Taxes?