@Amy Van Ollefen, @Jeremy Baker makes a great point that you want to keep in mind how a vacation home can effect taxes. This is my understanding regarding taxes and vacation properties:
1) If you rent it out all year long: You can claim tax and mortgage interest deductions, rental cost deductions, and rental loss deductions.
2) If you use it as a vacation home for more than 14 days per year and also rent it out more than 14 days per year: You can claim tax and mortgage interest deductions, you can claim rental cost deduction (but not over rental income amount) and you CANNOT claim rental loss deductions.
3) If you use it as a vacation home for more than 14 days per year and also rent it out for only 14 days or less per year: You can claim tax and mortgage interest deductions, you CANNOT claim rental cost deductions BUT that rental income is not taxed, you CANNOT claim rental loss deductions.
4) If you use it ONLY as vacation home and do not rent it out: You can claim tax and mortgage interest deductions (can only be done if this is your only second home...you can't claim this on unlimited second homes), you would have not rental cost deductions to claim and you would have not rental loss deductions to claim.
Hope this helps!
