Taxpayers who own a vacation home should report income and deductible expenses on IRS Form Schedule E. Full details in this TaxBuzz Guide.

Report income and deductible expenses on Schedule E. Deduct interest, taxes, and personal casualty loss (only disaster losses in federally declared disaster areas for years 2018-2025) expenses attributable to personal use of the property on Schedule A. Worksheet 5-1, Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home, in IRS Pub 527 can be used to determine the allowable expenses and any carryovers of expenses.