Depending on how tax-reform efforts shake out in Congress, vacation homes could become a less-appealing purchase — unless you want to become a landlord.
The House version of the Tax Cuts and Jobs Act would eliminate the deductibility of mortgage interest on second homes. If the provision is included in the final bill that comes out of the legislative process, the only way to benefit tax-wise from a vacation home would be to rent it out.
"If someone uses the second home purely for vacation, they would get no tax benefits. They'd have to rent it out to get a tax break," said Lawrence Yun, chief economist for the National Association of Realtors. "This would unintentionally make property ownership turn into rental ownership."