Updated almost 8 years ago on . Most recent reply
How does IRS view "Second Home"?
Trying to close a deal on a rental condo in a complex that has too many investment properties to do conventional financing. Our lender is saying we can get financing if we designate this as a "second home", for financing purposes. However, we will never live in the property and plan to always use it as a rental property. Will financing it as a second home prevent us from being able to get all the tax advantages of investment property? The lender is saying that the IRS pays attention to the *use* of the property, not the loan on the property.... Can anyone clarify this for us? Thanks!