Tax Breaks For A Second Home Discussed In A New Loan Love Guide

San Diego, CA (PRWEB) May 09, 2014

LoanLove.com is a borrower advice website that offers in-depth information on home loans that experienced home buyers can benefit from in an easy-to-understand and entertaining way that even first-time borrowers will be able to grasp. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending news, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Loan Love’s new article continues to keep borrowers up to date by sharing information on tax breaks for a second home.

This new Loan Love guide titled “Real Estate Second Home Tax Advantages In a Nutshell” starts by saying, “Congratulations! You’ve decided to take the plunge and buy that second home you’ve always dreamed about. Whether you are purchasing a long-awaited vacation home, seasonal residence or an investment property to bring in some additional income, there are some tax breaks coming your way that can help make ownership of a second home more affordable. The first thing to keep in mind about tax breaks for a second home is that different tax rules will apply depending on how you use your property:

•     personal use;
•     rental income; or
•     combination of the two.”

The article goes on to discuss the different second home tax advantages that are available depending on how the residence is used. First of all, Loan Love talks about the advantages of using a second home as a vacation home. The article says, “As long as you aren’t using your real estate as a rental, you can deduct mortgage interest at tax time just like you do your primary residence, up to $1.1 million of debt across both homes combined. Like other real estate, you can also deduct your property taxes on your second home, although you won’t be able to write off expenses like utilities or upkeep unless you can show the property includes an office devoted to your business.”

Loan Love goes on to explain that tax deduction rules are more complex for second homes that are used for rentals. The article states that the amount of days that the property is rented out will determine which second home tax deduction rules will apply. Owners of second homes that use their homes as combination rentals/vacation homes will have to determine how much time they will either live in their homes or rent them out. Rental costs and rental income will also come into play when tax time rolls along each year.

For more information on this subject, click here to read the full article on LoanLove.com.

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