Contact us to explore how you can optimize your second home as a lucrative investment, all while leveraging the potential advantages of real estate tax incentives. Much like primary residences, second homes with a mortgage offer owners the opportunity to deduct interest payments. For those who intermittently rent out their second homes, it's possible to reduce taxable rental income by accounting for various homeownership expenses. To be eligible for these deductions, the property should be rented at a fair market rate for more than 14 days or at least 10% of the total rental days per year.

 

Additionally, investment properties present numerous tax deduction opportunities. Owners can claim deductions for expenses such as mortgage interest, property taxes, insurance, maintenance, utilities, and losses incurred due to property damage. They can also factor in depreciation on the property's value each year.

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Always consult with a qualified Certified Public Accountant for professional advice.