There are special tax rules that apply to second home expenses and income recieved from renting the real estate. Here is a list of some issues that should be considered:
No Rental: Mortgage insterest and property tax can generally be deducted.
Rental 14 days or less: Rental income is income tax free, you deduct mortgage interest and taxes, but may not deduct maintenance or other rental expenses.
Rental more than 14 days: Report the rental and income and deduct the rental related expenses up to the amount of the rental income.
It is important you discuss any of these tax related matters with a qualified tax professional. For a great referral please give me a call.
