When you think of a vacation home, you think of the many benefits it will bring such as quality time with friends and family to having a place to get away from it all. But did you know this investment could also be a tax write-off? These deductions and write-offs that you can take advantage of as a property owner on a second property. Interested in learning more? Learn the basics about go-to tax write-offs when it comes to real estate, a deeper look into the top benefits of owning a vacation home and some of the ins and outs of vacation homes and Denver taxes.
Basics of Tax Write-Offs
Did you know that you could be saving hundreds or even thousands on your taxes each year through write-offs? This is something your local accountant can assist with. They can help look into the purchases you made and help you take advantage of these write-offs when it comes to tax season. So what are tax write-offs, exactly? These are expenses that per the Internal Revenue System (IRS), can be deducted from your taxable income. This can apply to both your personal and business tax returns. There are a wide variety of areas one can take advantage of with tax write-offs. Some of the several types of tax deductions
listed by the IRS include charitable contributions, student loan interest, expenses for your employer, job-related moving expenses and contributions to retirement accounts.
Inside Look of Vacation Home Benefits
For those who enjoy traveling, have a family or are looking for a “place to get away,” a vacation home is a great investment. Many families purchase a vacation home to create a place to spend quality time with children as they grow up. Others enjoy having a place that families can share or come together on vacations. For others, a vacation home is a great place to get away. Some use it as a place to work, while others use it as a place to disconnect. Certain parts of owning a vacation home can also be lucrative. Many will rent out their property during the times of year where they will not be staying in it, creating a great source of additional income.
Check out Airbnb
to learn more about renting out your vacation home.
Ins and Outs of Vacation Homes and Taxes
If you do not plan on using your vacation home as a property rental, you will be able to deduct your mortgage on the home the same way you can for your primary residence. For some, the benefits of renting out the property when they do not plan on staying there is a better choice to bring in additional income. In fact, more than two weeks is the time period which you must report if you are renting out the property. You can also discuss with your accountant some of the best ways to be able to deduct any losses from the rental as well. If you choose to rent out the property, you will need to report that as income.
If you are considering a vacation home, learn more about reigning in your money and monthly budgeting tips from your Denver accountant
. To discuss how you can financially benefit from a vacation home, Bloch, Rothman and Associates can help. Contact Bloch, Rothman and Associates
today to see how we can help show you the premier advantages!