The document discusses what qualifies as a second home for tax deduction purposes. It notes that the IRS allows taxpayers to deduct mortgage interest on up to two properties. To qualify as a second home, a property must have sleeping space, a toilet, and a place to cook. Additionally, the second home must be at least 50 miles from the primary residence. The document also states that you can rent out a second home and still claim deductions as long as you use it for at least 14 days or 10% of the rental period each year.

1. A Second Home....What Qualifies?<br />As the economy has wreaked havoc on the second home market, some buyers are seeing this as an opportunity to own something they might not otherwise be able to afford. Others are finding themselves quot;
stuckquot;
with 2 properties and not being able to sell one. <br />The IRS allows for up to 2 residences for a taxpayer to deduct mortgage interest. Also of note is what qualifies as a second home: <br />1. House <br />2. Townhouse <br />3. Condominium <br />4. Boat <br />5. RV <br />6. Mobile home <br />7. Trailer <br />The requirement is that the second home have sleeping space, a toilet and a place to cook. In addition, the second home must be at least 50 miles from the primary residence. (Note the 50 mile rule...say you commute 45 miles to work each day, a second home could be a quot;
crash padquot;
near your employer but 50 miles from your home). <br />Can you rent your second home and still take the mortgage interest and property tax deductions? Yes! As long as you use it for 14 days or 10% of the time it is rented, whichever is greater. Another benefit: if you rent your second home out for 15 days or less and for fair market value, the rental income is not taxable. <br />Of course, speak to a qualified accountant to answer any questions or concerns you may have regarding a second home. <br />Wolkia.com<br />“helping real estate embrace technology”<br />Facebook.com/realestatetechnology <br />