If you’re thinking about buying a second home, you might be eligible for some tax benefits. While we’re not tax professionals, and you should always consult with a tax expert to find out what you qualify for, we can tell you that there are some benefits you may qualify for if you’re buying a second home.
Mortgage Interest Deductions
Many people who own second homes, whether they’re investment properties or vacation homes, are able to write off the interest they pay on their mortgages.
Home Improvement Deductions
If you make improvements to your home (either one), you could qualify to deduct the interest on a home equity loan or line of credit.
Some energy-efficient improvements may also qualify you for different tax deductions that are designed to encourage homeowners to shift to more environmentally friendly practices.
In some cases, homeowners are able to deduct property taxes each year. Property taxes are based on the assessed value of the home, and as opposed to the mortgage interest tax deduction, there aren’t any limits on how much you can deduct for real estate taxes.
Becoming a Landlord
If you intend to rent out your second home for 14 days or less, your rental income is tax-free; there isn’t a limit on what you can charge per day or week when it comes to that tax break, either.
Are You Buying or Selling a Second Home in Lake City or Elsewhere in North Florida?
Whether you’re buying or selling a second home in Lake City or in another community in North Florida, we’d love the opportunity to help you.
Call us at 386-243-0124 or contact us online so we can begin searching for your next home right away.