I'm working on my second career after being downsized from a major auto parts company, and I'm a senior accounting student taking tax this semester.

I looked on the tax website (primary source) and in my text, the only thing that it states is if it is a 2nd home then it is a vacation home, and the mortgage interest is deductible. If you rent it out more than 14 days a year, then things change a bit, BUT, I could not find anywhere that stated that the vacation home must be in the U.S.

Even if you live permanently in Aruba, that is your primary location, you will remain a U.S. Citizen (I assume?) and will file a U.S. tax return, and take the deduction.

If you DO rent it out more than 14 days a year, then it is a business, and you can then depreciate all assets in the home, including window treatments, flooring, washer/dryer...everything!

I would assume if you bank in the U.S. and your money is here (interest payments) then you shouldn't have any issues anyway.

Check it out further to be sure, you might even do a mock return on TurboTax or some similar tax software if you use those, or do a search on there and see if anything turns up. What I see though, is you should be in the clear...

SK