Vacation Rentals Make Good Investment Sense
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Vacation Rentals and other Rental Home topics.
Vacation Rentals Make Good Investment Sense
For the homeowner considering ways to hang onto investment properties, turning them into vacation rentals has a number of advantages. In addition to providing another source of income through the rental revenue, vacation rentals can offer many tax deductions. A vacation rental property can become a vacation rental if your personal use exceeds 14 days per year and you rent the property out for two weeks or less.
By doing this, you can then write off a number of items from that vacation rental, including points paid on the mortgage over the life of the loan, property taxes, and interest on qualified mortgage debt up to $1 million used to buy, build, or improve a home. Further interest on any home-equity loans up to $100,000 on that vacation rental can also be deducted. If the amount of time that the vacation rental is used as such is more than two weeks, some of these deductions change, but these are still viable reasons why you can think about turning your investment property into a vacation rental.
| Guru Spotlight |
| Heidi Splete |
