Tax Benefits Of Owning A Holiday Home

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Owning a holiday home, to let,  in Central Florida, will earn you certain tax-related advantages.

 

If you use your vacation home as a short term rental, your home will qualify as a vacation rental. You can stay in the house as much or as little as you want.  Then, when you are not staying in the home, let it out to others who prefer to stay in a nice furnished home rather than a hotel room.

 

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How Would You Define That Property?

First, you will need to decide how you will be using the vacation property.  This way you will understand how the Internal Revenue Service,  IRS,  is going to classify it.  If you use your property as a private vacation/second home for you and your family, you will be viewed as a private residence and  the tax benefits do not apply to your home.  However,  if you consistently allow your home to be rented in a Short Term Rental program the IRS views it as an investment property.

 

The Tax Deductions You Qualify For

Tax BenefitsAs the owner of a vacation rental,  you are required to file an annual income tax return. Do not overlook the deductions that you can rightfully take. We recommend that you hire an accountant or tax professional to get expert advice and guidance on this. The deductions that you get to take on a vacation rental home include:

 

  • Insurance
  • Utilities / Monthly Expenses
  • Maintenance and Repairs
  • Mortgage Insurance
  • Depreciation
  • Property Management Fees
  • Home Supplies
  • Real Estate Tax
  • Airline/Rental Car expenses

 

 

Think about how much you actually save by buying a vacation home in Central Florida. Most people fear taxes, they can be complicated and typically mean more money out of your wallet. However,  buying a holiday rental home actually means that you get to successfully save on costs versus paying thousands of dollars renting someone else’s home and paying their expenses.

 

Make sure you are in-sync with the rules laid out by the Internal Revenue Service and your tax professional.

 

When you are looking to buy vacation property overseas, consider Central Florida!!  We have New Resort Communities offering returns comparable to commercial investments.   Visit JC Penny Realty’s website, and browse through their house listings and New Resort Communities. Location is what matters here. You can easily find properties close to Disney, great golf courses, and other entertainment venues. And of course, you can always enjoy the warm sandy beaches of the sunshine state.

 

 

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