Ideas and Opinions from Donald Trump and TrumpU Faculty.
A Second Home... What Qualifies?
As the economy has wreaked havoc on the second home market, some buyers are seeing an opportunity to own something they might not otherwise be able to afford. Others are finding themselves "stuck" with 2 properties and not being able to sell one.
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:
- House
- Townhouse
- Condominium
- Boat
- RV
- Mobile home
- Trailer
The requirement states that the second home must have a sleeping space, toilet and a place to cook. In addition, the second home must be at least 50 miles from the primary residence. (Note about the 50 mile rule - say you commute 45 miles to work each day, a second home could be a "crash pad" near your employer but 50 miles from your home).
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.
Of course, speak to a qualified accountant to answer any questions or concerns you may have regarding a second home.
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2 Comments
"INVEST IN AMERICA" "INVEST IN OUR CHILDREN'S FUTURE"
When Your Car runs out of fuel, coasts to a stop on the side of the road, you have to spend money to buy fuel for your car, start it up, put the shifter in drive to move forward. AMERICA has to do the same thing ! !
If we don't do this we are just sitting on the side of the road going no where.
It Takes Money to Make Money.
WE need to Invest In America so we aren't just sitting on the side of the road, watching all the other cars (Countries) speeding by us ! !
"TEAM UP AMERICA" ( Again I will remind everyone, Any New Plan has holes in it that will need to be plugged so let's Plug them together As A UNITED NATION, As Leaders that "Lead Our World By Example" using Respect as Our Guidelines to follow ! !
(I still have confidence that all of our Leaders can work on our budget and help us to fix our Country if they all put their heads together focus on the BALL ONLY and brainstorm together They & WE can do this ! ! )
"GOD BLESS AMERICA & OUR WORLD THAT WE ALL SHARE TOGETHER"
(Always Trying To Be Part Of The Solution In A Positive, Respectful Manner) Think Ameri-Can Do, This Way We CAN ! ! In the mean time WOW what an Opportunity for Investors Right Now ! !
Thank You, Respectfully, Michael V. Caldwell
Of course good investment come down to analyzing simple value factors - cash flow, expense, deferred maintenance and so on.
Check out our new residential investing association - the Internation Residential Real Estate Association
www.irreia.org
Blake Ratcliff