Thread: Second home vs rental property and what's deductible
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Old 03-01-2021, 11:41 AM
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Originally Posted by LiverpoolWalrus View Post
I couldn't find an answer on the IRS website, so I thought I'd come here.

Let's say you own a rental property that you live in 1/4 of the year (3 months). It was marketed for rent all of 2020 but you received zero income in 2020 because of the pandemic. You lived in it for three months. Is it a rental property or a second home?

Are tax deductions like repair and maintenance allowed in both cases (rental property and second home)? I'm aware the deduction has to be the same proportion as the number of rental days.

And what's most important as I bought the property in January 2020 --- are expenses like furniture, decorations and housewares deductible? Are they only deductible if it's considered a rental property and not a second home, or both, or neither?

Thanks!
A lot of changes last year due to the pandemic. Taxes are normally way over complicated but now forgettaboutit.

Suggest talking to professional.