A vacation home
is a dwelling unit
and may be a house
, mobile home
, or any other property that provides normal living accommodations
. If a vacation home or any dwelling unit is used as a residence
part of the time and also rented at fair rental value
for 15 days or more during the year, the expenses are prorated.
The vacation home rule: (for tax purposes)
Mortgage interest, real estate taxes, and casualty losses are allocated to rental use in the ratio of days a dwelling unit at fair rental value to the total number of days owned during the year. (Generally 365, or 366 during a leap year). Maintenance expenses are depreciation are allocated to rental use in the ratio of days the dwelling unit is rented at fair value to the total days the unit is used for both personal and rental purposes during the year.