• If you don’t rent out your vacation home at all you can deduct mortgage interest and real estate taxes.
• If you rent out your vacation home for two weeks a year (or less) you can still deduct the mortgage interest and taxes. Additionally, the rental income you realize on the home is tax-free.
• If you rent the home out 100% of the time (that means it’s a true investment property and you get no personal use out of it at all) you may deduct interest, taxes, all operating expenses, depreciation and rental losses up to $25,000 per year.
• If it’s a vacation home for you but you rent it out for more than 14 days a year, the laws are very complex. Sit down with your accountant to discuss it because small changes in use can make a big difference at tax time, and you may want to plan differently for next year.

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