Are you getting the best tax use from your vacation home?

Besides a place to unwind, a vacation home can provide some capital appreciation as well as some income. Different tax rules and deductions apply based on the mix of personal and rental use. A home is treated as a rental property only if personal use does not exceed 14 days or 10% of the days it is rented out.

There are special credits and tax breaks related to second homes, but the laws are complex. In addition, the new Tax Cuts and Jobs Act of 2017 (TCJA) included some changes for deducting residence interest, property taxes, home equity debt, and like-kind exchanges.