Second homes can be a wonderful place to escape and unwind, and they are the perfect place to create lifelong memories with your friends and family members. If you’re considering purchasing a second home or a vacation home, there are many tax benefits to doing so. In this blog, we’ll discuss the top three tax benefits of owning a second home.
At The Porches of Steamboat, we understand how challenging it can be to find a second home, especially in Steamboat Springs. That’s why we’re proud to offer luxury vacation homes with old-world craftsmanship in our 20-acre private neighborhood. Nestled in the heart of Ski Town, USA, our homes can range from 3,200 to more than 5,000 square feet and they come with the latest and greatest amenities. If you’re interested in learning more about our residences, contact us today!
Tax Benefit #1: Mortgage Interest
Did you know that when you own a second home, the interest on your mortgage is deductible? That’s right! The same rules that come with writing off the mortgage interest on your first home also apply to your second. If you’re married and filing jointly, you can deduct up to one million dollars. If you’re single, you have the option of deducting up to $500,000.
Tax Benefit #2: Property Taxes
Did you know that when you purchase a vacation home, you can deduct your second home’s property taxes? This number is based on the assessed value of the home, and unlike the mortgage interest tax deduction, there’s no limit on the amount of real estate taxes that can be deducted.
Tax Benefit #3: Rent Out Your Home
Another benefit of owning a second home is that you can rent it out to others. If you rent your home for 14 days or less over the course of a year, your rental income is tax-free (not to mention there’s no limit on what you can charge per day or per week!). This is a great option if you have friends or family members that are looking for a quick weekend getaway. If you’re thinking about renting out your vacation home, remember that if you rent it out for more than 14 days, you must report all of your rental income.
The Porches of Steamboat
As you can see, there are many tax benefits to owning a second home. If you’re looking for a vacation home in the mountains, you’ll love the homes and amenities that The Porches of Steamboat has to offer. We offer both whole ownership and fractional ownership options at our vacation paradise, not to mention we offer unparalleled amenities including a five-star housekeeping and maintenance staff. Other features of our residences include double car garages, air conditioning, air cleaning and humidifying systems, and comfortable and inviting porches. Browse our gallery to see some of our homes, or contact our professionals in Steamboat Springs to learn more!