Second home is a term in lending, as well as in tax.
For lending purpose, usually the second home has to be 50 miles or more away. For lending, second home is not exactly a rental, therefore the rate is lower than a rental but more than the primary residence.
However, for tax purpose, second home could be of any distance from the primary residence, as long as an immediate family member is living there.
Because seond home is not rented out, it is not a rental; but it is an investment property which means it doesn't qualify for 500K primary residence capital gain exclusion. So if this house was a rental and now a second home, the capital gain calcuation doesn't change.
So there are a lot of moving pieces in your situation. My suggestion is we don't know the future for your son after graduation, let him live there for a year, maybe he'll change jobs, maybe he go to graduate school, maybe he will get married and move to a different city, who knows. Why tie a 20 something down with a house? You can gift him the house once he is stable enough.
(a) if an immediate family member lives in a home, it qualifies as second home AS LONG AS the house is not rented out. IN another word, if the house is rented out and the owner don't live there, it is a rental.
(b) if the owners live in a second home part time (more than 14 days), and rent out the second home, they can claim BOTH second home as home mortgage interest deduction, AND treat the income as rental income.
It is complicated, like a brain twister.
(2) 将来卖房子，需要交campital gain费用吗
Capital gain wise, second home and rentals are the same, they are not primary residence, therefore they have to pay all the capital gain taxes, without "primary residence capital gain exclusion".
1. 租给他
2. quick claim deed 加他 - tax complication ?
3. quick cliaim deed to him - tax complecation ?
谢谢
https://www.irs.gov/faqs/itemized-deductions-standard-deduction/real-estate-taxes-mortgage-interest-points-other-property-expenses/real-estate-taxes-mortgage-interest-points-other-property-expenses-5
这个房离我自住房2迈， 可以算second home 吗。
初中房 转成 second home, 增值税怎么算？
Second home is a term in lending, as well as in tax.
For lending purpose, usually the second home has to be 50 miles or more away. For lending, second home is not exactly a rental, therefore the rate is lower than a rental but more than the primary residence.
However, for tax purpose, second home could be of any distance from the primary residence, as long as an immediate family member is living there.
Because seond home is not rented out, it is not a rental; but it is an investment property which means it doesn't qualify for 500K primary residence capital gain exclusion. So if this house was a rental and now a second home, the capital gain calcuation doesn't change.
So there are a lot of moving pieces in your situation. My suggestion is we don't know the future for your son after graduation, let him live there for a year, maybe he'll change jobs, maybe he go to graduate school, maybe he will get married and move to a different city, who knows. Why tie a 20 something down with a house? You can gift him the house once he is stable enough.
谢谢柠檬大侠。两个问题。如果她儿子入住。同时又出租其中一个或几个房间。有收入。
（1） 还可以按secondary home 报税吗？还是要按出租房报税。
(2) 将来卖房子，需要交campital gain费用吗
如果她儿子入住。同时又出租其中一个或几个房间。有收入。
（1） 还可以按secondary home 报税吗？还是要按出租房报税。
Depends.
(a) if an immediate family member lives in a home, it qualifies as second home AS LONG AS the house is not rented out. IN another word, if the house is rented out and the owner don't live there, it is a rental.
(b) if the owners live in a second home part time (more than 14 days), and rent out the second home, they can claim BOTH second home as home mortgage interest deduction, AND treat the income as rental income.
It is complicated, like a brain twister.
(2) 将来卖房子，需要交campital gain费用吗
Capital gain wise, second home and rentals are the same, they are not primary residence, therefore they have to pay all the capital gain taxes, without "primary residence capital gain exclusion".