Renting Your Second Home Is Not a Vacation from Taxes

Many of us dream of owning a second home, but a second property can be much more than your vacation destination. In addition to a getaway for your own use, renting out your second home is a great way to offset its expense and earn extra income. But just like other types of income, the IRS expects its share of tax if your property and its use fits their definition of a “vacation rental home.” Here are some ways to determine whether your second home qualifies as a vacation rental, what needs to be reported, and what you can deduct.