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Level 1
posted Jan 6, 2023 7:40:57 AM

Can I let family live in second home for personal use deducting only real estate tax or do I have to report rent at fair market value and deduct all expenses?

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1 Best answer
Level 15
Jan 6, 2023 7:49:57 AM

If the property is being used as a second home, there should be no income to report and the only expenses that can be deducted are property taxes and mortgage interest (if you itemize and subject to limitations).

1 Replies
Level 15
Jan 6, 2023 7:49:57 AM

If the property is being used as a second home, there should be no income to report and the only expenses that can be deducted are property taxes and mortgage interest (if you itemize and subject to limitations).