For those who are deducting interest on loans covering vacation/second homes and RVs considered vacation/second homes, have you noticed that the proposed tax changes would eliminate the deductibility of interest on those? This applies to loans already in existence and those acquired in the future. No grandfathering here. However, if you rent out your second home and are considered a landlord who can deduct all expenses associated with rentals, then interest expenses will apply, as I read the text anyway. The proposed tax change would recognize only one residence to be eligible for mortgage interest deduction. This confuses me a bit as this would appear to be contrary legislation for the very wealthy but then they are likely to own/lease through corporate structures of one sort or another that will not be impacted by this particular change.
WE are looking to build a large addition that will be ada fitted and live there and have my daughters family move in the old house and pay rent that we will use to pay mortgage does any one have experiece with this I know there seems to be issues regarding fair market rent..I want to be able to use landlord benefits because we will have rent income to report on taxes. We are not going to use rented part. No cooking etc. any advise or resources helpful. IRS tax materials really confusing want to keep as simple as possible
I should have used the words "for business purposes" in defining what properties would be eligible for future deductibility of interest on second residence mortgages/loans. How many of AARP members use their vacation homes and RVs for "business purposes"? Ha ha