dyu9999[at]gmail.com wrote:

- quote -

They're rental properties from the time they are put up and
available for rent.

- quote -

Vacation homes: Property taxes are deductible. Interest
using your main home and one other home as collateral are
deductible. Repairs have no tax consequences.
Improvements are capitalized.

Rental property: All taxes are deductible. Interest USED
on the prpoerty is deductible. Repairs are deductible.
Improvements (and the value of the home) are depreciated.

- quote -

Purchase/sale fees are adjustments to basis or the selling
price, in either case. For rental property, deductions in
excess of income may be suspended. For a vacation home with
incidental rental, deductions in excess of income are lost.

- quote -

Schedule E.

- quote -

Separate columns on Schedule E. They get combined, later.

You probably do need a professional this year. However,
I'm almost certain the properties are rental properties.

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You should engage a local tax preparer to do it for you this
year. You have too many different things for a novice to
handle.

Missy Doyle

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I would appreciate any clarifications.

I bought 2 homes in a different state, planning to rent for
a profit, I also hired the agent to manage and put them out
for rent for months but could not rent, so I sold them
before the year end. My questions:

1) Should I treat them as vacation home or rental home (
even though I did not rent for a day )? The homes are empty
all the time.

2) What are the major differences between vacation/rental
homes in terms of tax deductions ?

3) Can I deduct property tax, mortage, purchasing/selling
fees, insurance premium, fix-ups, utilities ? Is there a
limit on the deductions ?

4) Which Schedule/Forms should I use ?

5) Do I claims each house separately or can combine the
numbers together ?

Thanks much!

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