Can I deduct expenses for a second home?

It is not clear from your description of the situation whether your daughter is paying your fair market value rent for the house.  That matters.   If you own the house and are allowing her to live there and just pay for some of the expenses that do not amount to fair market value rent, then you have a second home--for which you can deduct mortgage interest, property tax you paid, and possibly loan origination points.

If you are charging and collecting fair market value rent---then you can think about entering rental income and expenses.

Please explain in more detail what your agreement/arrangement is with your daughter.

@Carl11_2   ?    @Anonymous_   ?

If you rented to your daughter at fair market value (comparable to other homes that are rented in that area- and TurboTax has a section that you can use to see how much rent is fair market in the area in the Rental section), you can designate this as a rental property and take the normal deductions for things like depreciation.  Note that you do have obligations to treat the activity as a business with records etc,  See Rental Real Estate and Taxes - TurboTax Tax Tips & Videos

She reimbursed me for utility, maintenance, interest and property tax expense. Can I use this as rental income on Schedule E and offset it with repair costs I did not charge her for as repair expenses on schedule E?

Doesn't sound anything like a rental to me. Typically, a tenant pays their own utilities unless stated otherwise in the rental contract. Being reimbursed only for the expenses you incur does not make it a rental property by any stretch.

If the amount you were paid by your daughter was less than $16,000 for the entire tax year, then it could be considered a gift from your daughter to you and nobody has to report anything about this on their tax return. If more than $16,000 for the tax year, it could still be considered a gift. But the giver (your daughter) would be required to file IRS Form 709 - Gift Tax Return. Don't let the name of that form mislead you, as nobody would pay taxes on it. The giver (your daughter) would merely be satisfying a legal requirement to report a gift where the value/amount exceeded $16,000 for the entire tax year.

The other possibility, is that you would report the "reimbursement" as other income and no SCH E is necessary. But the other income would be taxable income to you. The taxability of most of that income might be offset, since you can claim mortgage interest and property taxes as an itemized deduction. But it only helps if the total of all of your SCH A itemized deductions exceeds your standard deduction. I question if they would, as it's doubtful.

If you do report the income on SCH E as rental income, since you would be renting at below fair market rental value, once you're losses got the taxable rental income to zero, that would be it. Any excess losses would not be allowed and you could not carry them over either. You just lose those losses permanently and forever.

The "hurt" would come into play when you sold the property, due to the requirement to recapture and pay taxes on the depreciation.

Additionally, the fact that you're renting to a related party comes into play here, since you're not renting to that related party at the fair market rental value. Legally, the property would still be considered a 2nd home for tax purposes. So your normal SCH E expenses would not be allowed at all.

Now for me, I'm in the same boat you are. My daughter lives in one of the properties I own and she only pays the mortgage and utilities. (My mortgage includes escrow for insurance and property taxes.)  Therefore when she moved in I converted the property from rental back to personal use and just treat it for what it really is.... a 2nd home.  There are times when my daughter can't make the mortgage payment for a specific month too. So I just make that month's payment from my own funds. There's no way I'm gonna let my grand daughter go without a roof over her head.