Hello friends. I took a HELOC on NJ home to buy a vacation rental in Florida (early 2024). Did not receive approval to start renovations by year end. No renters in '24 but lots of expenses (oil tank removal, taxes, utilities, termite tenting, lawn maintenance/tree removal, insurance, etc.). I traveled several times. Stayed with family but took flights and ate plenty. Is anything deductible for 2024 taxes? Thank you.
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The deductibility of your vacation home expenses depends on the use of your vacation property. If it is strictly for personal use the deductions are basically the same as for your primary residence. You can deduct property taxes and mortgage interest. You may even be able to deduct a home office expense if you meet the requirements.
However, as with your primary home most home improvements are not readily deductible on your tax return. They may be used to reduce a capital gain when your home is sold.
If your vacation home is used as a rental or a combination of rental property and personal use you may be able to deduct some of the home improvement costs.
Most home improvements aren’t tax deductible. Some deductions that are tax deductible would be:
Some deductions available for a rental property would be mortgage interest, property tax, operating expenses, depreciation, and repairs. You can deduct the ordinary and necessary expenses for managing, conserving and maintaining your rental property. Rental property owners can deduct many travel expenses. These include mileage, meals, lodging, and other travel-related costs:
Click here for "Tax Tips for Second-Home Owners"
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Click here for "10 Tax Tips for Airbnb, HomeAway & VRBO Vacation Rentals"
Click here for "Buying a Second Home—Tax Tips for Homeowners"
Click here for "Topic no. 415, Renting residential and vacation property
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