Definition of Vacation Home
Vacation home is a residence other than the owner’s primary residence that is used for vacations or other recreational purposes.
Explanation of Vacation Home
A vacation home is often rented to boarders during times when the owner is not using it. Different tax rules apply for how much interest can be deducted and how much rental income can be declared, depending on how often the owner uses the vacation home, how often it is rented, and how often it is unoccupied.