A Second Home....What Qualifies?<br />As the economy has wreaked havoc on the second home market, some buyers are seeing this as an opportunity to own something they might not otherwise be able to afford. Others are finding themselves "
with 2 properties and not being able to sell one. <br />The IRS allows for up to 2 residences for a taxpayer to deduct mortgage interest. Also of note is what qualifies as a second home: <br />1. House <br />2. Townhouse <br />3. Condominium <br />4. Boat <br />5. RV <br />6. Mobile home <br />7. Trailer <br />The requirement is that the second home have sleeping space, a toilet and a place to cook. In addition, the second home must be at least 50 miles from the primary residence. (Note the 50 mile rule...say you commute 45 miles to work each day, a second home could be a "
near your employer but 50 miles from your home). <br />Can you rent your second home and still take the mortgage interest and property tax deductions? Yes! As long as you use it for 14 days or 10% of the time it is rented, whichever is greater. Another benefit: if you rent your second home out for 15 days or less and for fair market value, the rental income is not taxable. <br />Of course, speak to a qualified accountant to answer any questions or concerns you may have regarding a second home. <br />Wolkia.com<br />“helping real estate embrace technology”<br />Facebook.com/realestatetechnology <br />