Taxes and the 2nd house

[19Kona]

How are you guys writing off your 2nd houses (like my AZ house when my primary is in CA).
What works better, rental losses or just to say it is a 2nd primary.
Come on, there must be a tax advantage (I hope).

[totenhosen]

How are you guys writing off your 2nd houses (like my AZ house when my primary is in CA).
What works better, rental losses or just to say it is a 2nd primary.
Come on, there must be a tax advantage (I hope).
It depends. If you claim it as a rental than you should have rental income to report. At the same time you get to write-off depreciation, interest, management fees etc. Hopefully the expenses can offset any income.
Not sure what the tax laws are in regards to how many weeks or ??? you have to have it rent it out to be considered a rental. From the sound of it it is trully a 2nd home.

[SDLifesaver]

For it to be a Non Red Flag Rental you can only use it 2 weeks out of the year. The other time has to be rental or attempted rental. We found that it is just best to write off all the interest on you 2nd home loan like you do on your primary residence.

[djunkie]

For it to be a Non Red Flag Rental you can only use it 2 weeks out of the year. The other time has to be rental or attempted rental. We found that it is just best to write off all the interest on you 2nd home loan like you do on your primary residence.
What he said. Not sure of how long but it has to be rented for so many weeks/months for it to be considered a rental.

[Mrs. 4-B]

For it to be a Non Red Flag Rental you can only use it 2 weeks out of the year. The other time has to be rental or attempted rental. We found that it is just best to write off all the interest on you 2nd home loan like you do on your primary residence.
Same here. We were advised by our tax person that it was in our best interest to just write off the interest. Don't want the IRS showing up at my door. :2purples: