Tax deductions/expenses for 2nd home closing costs for a vacation rental?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:Thanks all. We've only ended up renting it out a few months out of the past year. Rest of the time it was spent on repairs vs actually using it as a vacation home is what I meant.

I think I'll skip amortizing any closing costs and just deduct the expenses in repairs + mortgage interest and depreciate the large ticket items like roof replacement.

You can only deduct expenses to the extent you had rental income so the best you’ll do is a net zero unless you are in the real estate business or poor.

Humm...I thought I am allowed to carry over expense loses for following years as long as I am renting parts of the yaear? I currently have the place rented for another 3 months till spring and plan to rent out at least 6 months per year if we can make it work.

You can carry over losses, but at some point you need to make a profit (or have a relatively low income) to be able to actually write them off.

You can’t write off losses until you sell. They carry forward until then, and at that point they will go against ordinary income.

If at some point you make a profit on rental income, you can deduct carryover losses on line 22 of Schedule E.

True, but doubtful with depreciation.