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Good evening. If you keep it as a second home, you can only deduct the interest (limited up to a $1,000,000 in mortgage loans between both houses) and the property taxes. Plus you have no revenue. If you rent it, you can deduct all the expenses, such as insurance, repairs, etc. You can also depreciate it. And, you have revenue, which is taxed. The renovation expenses would not be deductible, but would become part of the depreciable basis of the property. The expenses would not be deductible until you had completed the renovations and held the property up for rent.
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