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<<My family and I wish to visit the Philippines at least once or twice a year during retirement.
Hotels usually charge $150-250 a night so I'm thinking of investing in a condominium unit in Makati.
What are the tax implications for a US citizen buying a second home in the
Philippines?

Do I get to write off condo fees, maintenance expenses, travel, etc?>>

Where the second home is located is not the issue, Top. In general, regardless of where the properlty is located you'll be able to claim mortgage interest and property taxes as itemized deductions. But just like any other second home, travel to and fro, condo fees, maintenance expenses, etc. are generally NOT deductible.

Now, then, if you were to lease the property out during the year, and make one or two visits a year, strictly for maintenance purposes, you would have a different set of circumstances, and potentially some additional problems.

If you DID try to turn the property into a business property, you would still have problems trying to justify travel expenses (especially for the entire family) to the islands simply for maintenance.

But if you DO want to try to push the envelope on this, you should really get some professional tax advice.

TMF Taxes
Roy
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