Can I claim deductions on a home I no longer live in?
I have a house that has my name on the mortgage and deed. I recently moved away from that house (located in PA) and now currently reside in NY.
Currently, my parents live there and help maintain the house and pay part of the mortgage. Would this qualify as a second home and can I still claim the deductions on my income tax? I assume this would be classified as personal use and not a rental, but I'm not sure. I currently do not reside there at all, although I visit from time to time. Also, if I am eligible to take out a deduction, am I obligated to pay Pennsylvania income tax as well as local taxes?
If you are living in New York then presumably you are voting in New York, you file taxes as a New York resident, and otherwise have all of the qualities of a full-time New York resident. In that case, your primary home is your New York address and your second home is your house in Pennsylvania where your parents live. On Schedule A, you can fully deduct your real estate taxes and your mortgage interest as long as you are actually paying all of those taxes and you are paying all of the mortgage interest. If someone else is paying part of the taxes and/or interest, then they can deduct their share and you can deduct yours, as long as the combined deductions don't exceed the total actual real-estate taxes and mortgage interest. Second homes are as fully deductible as first homes.
You don't have to pay taxes in Pennsylvania because you are not a Pennsylvania resident and you have no income from that state. On your 1040 and your New York form you must declare everything you earn worldwide including your Pennsylvania-related income (if any) and expenses. If you are charging your parents rent to live in your house then you must declare the rent as income and pay both federal and Pennsylvania taxes on it after first subtracting expenses connected with the rental.
You meet the qualifications for a personal use property since your home is used by your parents and (I assume) that they are not being charged a fair market rent to reside there. You say they "pay part of the mortgage" so that is why I assume the rent is not fair market value. You can claim the real estate taxes on the home as an itemized deduction on federal Schedule A. You may be able to claim the mortage interest deduction on the home subject to limitations based upon the aggregate amount of acqusition debt up to $1,000,000 (purchase of the home or substantial home improvements) and the aggregate home equity debt up to $100,000.
You should not be subject to PA income taxes unless you have PA source income.