Can you depreciate vacation rental property? Yes!As long as you own the property, it has a determinable useful life, it's expected to last more than a year, and it's used for business purposes, you can go ahead and claim depreciation.
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There are various ways to avoid capital gains taxes on a second home, including renting it out, performing a 1031 exchange, using it as your primary residence, and depreciating your property.
The pros can include equity appreciation, tax deductions, and having a personal getaway to use for your own vacations. The cons can include the effort of maintaining an additional property, and the extra expenses—both unexpected costs and expected ones, like taxes and insurance.