Looking for a second home definition? It’s much more complicated than you might think.
Here’s what you need to know to classify your home.
What’s a second home?
A second home is a home you don’t live in full-time but whose primary purpose isn’t as a rental property. But this is a vague definition and there are some situations where the term “second home” is more specifically defined.
With that in mind, here’s a rundown of what makes a home a second home and why it’s important to know.
Three types of homes
For most purposes, residential properties can be grouped into three categories:
This is the home you live in most of the time. The exact definition depends on who you ask, but the IRS defines it as a home you owned and lived in for at least two of the past five years. Generally speaking, a primary residence is the home where you live most of the year. It’s usually close to where you work, too.
This is a home you own that’s not your primary residence, but whose primary function isn’t as an investment property. To qualify as a second home, you must live in it for at least part of the year. Also, “second” is somewhat misleading. It’s possible to own more than one “second home.”
This is a home you own for the primary purpose of renting out. That’s not to say that you can never use an investment property for personal use. But it can’t be the main function of the home.
What makes a second home, specifically?
When it comes to tax purposes, a property can be considered a second home under two conditions:
- You live in it for at least 14 days each year.
- You live in it for 10% of the days you rent it out.
You have to satisfy the greater option. For example, if you rent out a home for 180 days of the year and live in it for 18 days or more, it’s considered a second home for things like the mortgage interest deduction.
Many lenders have more stringent requirements than the IRS. In fact, many lenders won’t offer second home financing if you plan to rent out the home at all.
7¢ Skip Tracing – Guaranteed lowest price on the market for the best quality data.
Don’t just take our word for it. Try us out by running a small list first to see the tier 1 data for yourself. We are offering non-members access to member pricing, so you can experience the Skip Force Difference and improve the quality of your lists.
Pay wholesale price for quality data
Receive the TOP 3 Phone Numbers
Discover which phone numbers are best
Learn the BEST Time to reach a contact
We can take your old list, grade it and come up with the
BEST NUMBERS to contact
Develop a SNIPER MARKETING Plan
Increase ROI and TEAM MORALE
We have extended this special but cannot afford to keep this offer running for long.
Have Questions? Reach out to us, we’re here to help.
Call us at: 866-962-8190
“Skip tracing” is the process of locating a person’s whereabouts. If you’re in real estate, skip tracing allows you to find motivated sellers for great deals. By skip tracing you’ll be able to get listing, wholesale, or investments faster. How Does Skip Tracing Help In Real Estate? Let’s say you have a list of foreclosures. […]
Skip Force Drilling One Skip Force Drilling One – Interesting people are interested. Why did he say that? Because people tend to always talk about themselves. Right. What? You want to listen to someone who keeps bragging about himself? No. Right. You want to brag about yourself, too. So mirroring actually is the way is […]
SF Pricing Explained SF Pricing Explained – We have multiple options with our skip tracing and property data services. I’m going to break it down for you so you can make the best decision for your business. For skip tracing, there’s member pricing and nonmember pricing. Now you’re going to get the same data for […]