You also get to deduct rental expenses, and that gets complicated because you need to allocate costs between the time the property is used for personal purposes, and the time it is rented. More than 14 days, you must report all rental income.

The house is considered a personal residence, so you deduct mortgage interest and property taxes under the standard rules for a second home. There will be no State or Federal costs associated with the tax return and no. Even if you're charging $5,000 a week, the IRS doesn't want to hear about it. Turbo-Tax & Business Tax Preparation The Home and Business software option. 14 or fewer days during the year, you can pocket the rental income tax-free.Very different tax rules apply depending on the breakdown between personal and rental use. Lots of second-home buyers rent out the property part of the year to get others to help pay the bills. However, beginning in 2018, the total of all state and local taxes deducted, including property taxes, is limited to $10,000 per tax return. In fact, unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own. You can deduct property taxes on your second home, too.

Turbotax deluxe with state 2018