If the first property is your primary residence, the second home for many people is as a vacation home. But if looking for tax advantages, the home should become a rental property. All rental income received for the year is reportable, and all expenses are deductible. This could considerably lower the taxable income. In addition, depreciation of the property could result in a net loss for the year which is normally deductible against other income. This is a big tax savings feature.

If the rental property has no income for the year then no expenses are deductible. In which case, the taxes and mortgage interest, if any, would be deductible as itemized deductions on Schedule A.