Anyone buying Highlands real estate should know that there are tax benefits of owning a second home. Whether you rent your second home or decide to keep it all for your own use, if you spend at least 14 days (or 10% of the time that you rent it) a year in the home it counts as a residence . If you follow these rules then you can write off the mortgage interest for your Highlands vacation property. If you rent your home out for 200 days a year then you need to use your home for at least 20 days or the IRS will consider it a rental property and your mortgage interest will not be deductible.
Likewise, if you rent your Highlands home for more than two weeks a year then the income that you make from it will need to be reported. If you rent your home for less than two weeks you get to keep the income you received without reporting it to the IRS.
When you rent your Highlands home for more than two weeks a year you get to claim the following deductions: mortgage interest, upkeep and maintenance expenses, utilities, depreciation, insurance, and other miscellaneous expenses. One thing to keep in mind is that you cannot take a loss if your revenue is less than your expenses.
Contact us today to learn more about buying a vacation home in Highlands NC. We have access to all homes that are currently listed for sale and have the experience and knowledge that you need to find a property that best suits your needs.
Click here to read an article from Smart Money regarding the tax benefits of owning a second home.
For more information about Highlands and Cashiers North Carolina, and for access to the Highlands/Cashiers NC MLS, contact Meadows Mountain Realty today, 828-526-1717 or email us today at info@bhhsmmr.com.
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