Buy Now, Retire Later-An Investment In
Your Dreams
by: Elaine VonCannon
3 of 5 Tax
Advantages Can Be Found Everywhere Regardless of the avenue you
take to invest in your retirement, the IRS offers tax advantages in a
wide variety of ways. Mortgage interest and local and state real estate
taxes are all deductible if you live in your second home a portion of
the year. Write offs are limited to two homes. If you rent the home for
less than 15 days you do not have to claim the rental income or pay
taxes on it. If you rent your second home more than 15 days you must
report the rental income. However, now all of the expenses used to run
the property are deductible. Property taxes, interest, insurance,
repairs, utilities, supplies, cleaning and maintenance are all
considered expenses. Equity in your first home can also help with the
purchase of a second home as a retirement investment. A home equity loan
or line of credit can be used to cover the down payment on a second
home. Be aware however, that borrowing in this way only allows the first
$100,000 of equity debt to be written off. About
The Author
Elaine VonCannon is a REALTOR with RE/Max
Capital in Williamsburg, Virginia, and she manages investment property.
Elaine is also an Accredited Buyer's Representative as well as a Senior
Real Estate Specialist. She has helped numerous clients invest in and
make money on property in Southeastern Virginia. She can be reached at www.voncannonrealestate.com.
vonmor1@cox.net |
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