Boston Condos for Sale and Apartment Rentals

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Second Homes as Boston Apartment Rentals

A primer on second homes vs rentals:

Before buying a second home as an apartment rental, it’s smart to know how owning a second property could impact your taxes. There are many second home tax benefits to consider, but they’ll vary based on how the IRS classifies the property — as a second home, an investment property, or a little of both. Here are the main differences:

A second home:

  • Is occupied by the owner at least 14 days out of the year

  • Is rented to others 14 days or fewer out of the year

An investment property:

  • Is occupied by the owner fewer than 14 days out of the year

  • Is rented to others more than 14 days out of the year

A mixed-use property:

  • Is occupied by the owner more than 14 days out of the year

  • Is rented to others more than 14 days out of the year

Second home tax benefits

As long as you occupy your second home for more than 14 days a year, you may qualify for these second home tax breaks: 

Mortgage interest deduction

Single filers and married couples filing jointly can deduct mortgage interest up to a total of $750,000 from all properties they own, including a principal residence and their second homes. This is subject to change in 2025, when the Tax Cuts and Jobs Act is scheduled to expire. At that time it is expected that the $1 million limit will return.

Property tax deduction

You can deduct property taxes on all the properties you own, with a maximum deduction of up to $10,000 per tax return, or $5,000 if married filing separately. Keep in mind that this is included in the deduction for state and local income taxes (SALT), so you might reach that $10,000 quickly with your principal residence and be unable to deduct property taxes from a second home.

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Boston Condos for Sale and Apartment Rentals

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