Last year the number of vacation home sales rose even after the astonishing 64.5 percent gain in investment property sales reported in 2011, according to the National Association of Realtors (NAR). The general opinion of leading real estate watchers is that positive gains are likely to occur in 2013 as well.
The sunny outlook on Fort Lauderdale vacation homes could be attributed to the many recent personal tax stories in the media, the wonderful weather or a plethora of other reasons. Whatever the explanation might be, 2013 is shaping up to be a particularly attractive time to make a vacation home investment.
Tax Benefits For Fort Lauderdale Vacation Homes
At Luxury Living Fort Lauderdale, our specialty is real estate, not dispensing tax advice. We humbly recommend you check with your trusted CPA and financial adviser for guidance in that area. With that said, if you are thinking about purchasing a Fort Lauderdale vacation home, now might be the time to explore your options. Here are a few tax deduction benefits you may want to discuss with your tax team:
Mortgage Interest – Taxes for vacation homes depend on the ratio of days the home is rented to non-family members at fair market value versus the number of personal use days. Personal use days include any part of a day the residence was used for personal purposes by a relative and any individual whose rent is less than fair market value. In addition, the rental income from a home that is rented for less than 15 days in a year is generally tax-free.
Maintenance and Utilities – If the personal use of a vacation home is less than 14 days per year it may well qualify as a rental property and thus be eligible for standard investment property deductions, such as utilities, repairs and upkeep.
Value Depreciation – Owners of qualified vacation homes are generally able to make applicable tax deductions for home and furnishing value depreciation.
With the help of a trusted professional and proper planning, you can take advantage of tax and investment benefits, while enjoying your Fort Lauderdale vacation home! Start with your tax professional to determine the benefits that make sense for your situation. Then, contact us at Luxury Living Fort Lauderdale to help you find the perfect property where you can escape, relax, unwind and live the luxury lifestyle you deserve!