A second home is a residence that serves as a non-primary residence for a taxpayer, often used for leisure or vacation purposes. Tax laws allow interest deductions for up to two personal residences, including second homes.
A vacation home is a dwelling that the owner occasionally uses for recreational or resort purposes. The home may be rented out to others for a portion of the year. Income tax deductions related to vacation homes depend on the owner’s frequency of use.
A villa traditionally refers to a Roman country house for the wealthy, but its modern interpretations include farmhouses, urban estates, and vacation homes situated in warm-weather destinations.
