Even if you love your home and have not thought about buying a second one, you may reconsider after learning about the tax breaks available to those who own a second home. Many politicians and celebrities use their ownership of several homes to ease their tax burden and so can you! Buying real estate is good for the economy on all levels, so our government grants some special tax breaks to encourage this behavior. Low interest rates may make this option even more viable, too!
If you do not rent out your home, or your second home, all interest up to $1.1 million can be deducted from your income. If you decide to rent out your home, things change a bit and you have to report that income. However, if you rent out your home for fourteen days or less, it does not count. You could rent your home out for $30,000 for one week and the IRS would not care. It only counts past that fourteenth day.
In addition, you can deduct the property taxes from each and every home that you own. Lastly, owning a second home can allow you to reside in a state with more favorable taxes. As long as you live in a state for over half of the year, you can file your taxes in that state. Enjoy weekend getaways and tax breaks if you consider buying a second home and smile as you make your purchase.
Aaron Zapata is the broker-owner of Zapata Realty, Inc. located in Yorba Linda, CA. He has been a licensed broker for over a decade. His growing practice includes residential and apartment sales in Southern California.
Aaron holds a degree in Biblical and Theological studies from BIOLA University and a Masters of Business Administration (MBA) from Cal State Fullerton. He has been quoted by the Los Angeles Times, Orange County Register, and the Associated Press and is an author and speaker. He is also maintains designations and memberships with nearly a dozen organizations aimed at raising the standards and ethics in the real estate industry. Although ranked in the top 1% nationwide, he gives each client his focused attention with the simple purpose of doing what is best for them. Nearly all of his business comes from referrals from his satisfied clients.
Aaron lives in Yorba Linda with his wife Dawn. They have been married for 18 years and have a 10 year old named Levi, a 7 year old named Malachi, and they have a Beagle name Sadie. He is an active member of Friends Church in Yorba Linda as a Board Member, and the Chamber of Commerce where he serves as the Chamber’s Network Connection President. This past summer he travelled to India with his oldest son to care for and educate the poorest of the poor.