Hello BiggerPockets Network!
My wife and I are in the process of buying our first rental property, which we are financing as a second home since we plan to stay there when it is not rented. We have a primary residence as well that is also mortgaged with the same lender. We are planning to AirBnB the cabin, and the current owners also had this cabin as a second home that they rent on weekends some of the time.
Can someone advise us on the tax implications? I understand from the current owners that you can only rent it a certain amount of the time, and that there are some other tax implications. I was told by our lender that as long as we are there one time a month it can be a second-home mortgage and that we dont hvae to finance it as a commercial investment property because of that so curious how it really works for taxes.
Speaking of taxes, where should we store the rental property income from this property? I am considering a second checking account for this purpose to keep funds seperate from our other income. I also have an LLC, and was considering if I should open a second LLC with another business checking/savings for this property.
Any advice is so appreciated it - we feel good about keeping it rented and we close April 26th.