A Beginner’s Guide on Tax Deduction for Property Investors (VIDEO)

Now that the real estate markets may be stabilizing, perhaps you are considering joining the millions of Americans who own second (or more) homes. There are several different possible tax considerations that you should understand before you jump into the market.

You Are Entitled to Tax Reduction if Your Second House is Not Being Used

If you have purchased a second home and do not intend to rent it out, you are entitled to deduct the real estate taxes and mortgage interest you paid on this residence. These deductions are claimed on Schedule A in the same manner that the deductions for your personal residence are claimed.