Vacation Home
The Internal Revenue Service classifies a home as a personal residence, personal residence/rental property, or a rental property. If you do not rent out your vacation home or you rent it out for only 14 days or less, you can deduct only your mortgage interest and real estate taxes if you itemize deductions. If you rent it out for more than 14 days, you must include the rental income in your tax return, but you can also claim rental expenses subject to certain limitations. The number of days you use the home for personal use and how actively you are involved with renting it out affects the amount of the expenses you can claim.