I am working overseas, I want to buy a house in Texas. Can I consider it to be a 2nd home and ask the mortgage company to give me interest as second home instead of calling it "investment property" ?
The interest rates and taxes for 2nd home is less than investment property.
It will be rented out till we come back to Texas.
Yes! Well… no, not since you just told us it will be rented out. Investors will consider it a second home if it is;
A) not going to be rented out.
B) farther than 50 miles from you primary residence.
C) in a place where people would typically vacation.
August 8th, 2007 at 9:43 am
Because you are renting it out, it is not a second home. A second home has to be one that you can visit and stay at as your second home.
If it is rented to someone as their residence, it is an investment. You can still deduct interest, depreciation and other expenses as a investment property that you would necessarily be able to deduct as a second home.
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August 8th, 2007 at 9:43 am
You should consult with a tax advisor. You could face tax implications that no one here can address without all your financial information. And I wouldn't put that out here!
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August 8th, 2007 at 10:51 am
Yes! Well… no, not since you just told us it will be rented out. Investors will consider it a second home if it is;
A) not going to be rented out.
B) farther than 50 miles from you primary residence.
C) in a place where people would typically vacation.
References :
August 8th, 2007 at 11:40 am
You are out of luck, this is an investment, not a vacation home for your family.
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