Income tax question?

Question

If someone lives in new york and owns a second home (investment) in florida what kind of deductions can I make for the expenses of that house. (tax deductions)

what if its a rental property?

Answer 1

you can offset rent against housing costs (interest insurance property tax repirs etc) leaving a small profit or maybe even a loss

also you are entitled to claim depreciation on a rental property

this is federal regulation

you may be forced to complete 2 separate state returns

Answer 2

If this is a second home you can deduct the mortgage interest and property taxes if you itemize your deductions.

If this is a rental property, you can deduct all of your reasonable and necessary expenses in maintaining the property. This goes on Schedule E so it applies whether you itemize or not. Mortgage interest, property taxes, insurance, maintenance and repairs, utilities, management commissions and fees, and depreciation, etc. are all fair game. The only test they must meet is that they are reasonable and necessary for the production of rental income. That includes necessary travel expenses to inspect the property, make repairs, interview prospective tenants, etc. so long as the primary purpose of the trip is for issues related to the rental property and not personal in nature.

Answer 3

If you itemize, you can deduct property taxes and mortgage interest within certain limits on both homes.

This assumes that you are not renting out the Florida home - you didn't say that in your question, so I'm assuming it is a vacation home for you. The previous responders assumed it was a rental property. The answer is very different depending on which it is.

Answer 4

All of the costs associated with maintaining the house (including mortgage interest and taxes) plus the cost of renting the house and, if you have an on site person, the cost of that as well. You should also be able to deduct the cost of a short trip to FL once or twice a year to make sure all is well.