Those considering buying Highlands real estate should be aware that there are tax breaks for second homes. While homeowners are well aware of the benefits of writing off the mortgage interest paid on their primary residences, you may be unaware of the tax benefits associated with a vacation property. Highlands vacation homes have many advantages, some of which are pointed out on April 15th.
Tax information for owners of Highlands vacation homes:
- Tax-free rental income. If you rent your home for two weeks or less you do not have to pay taxes on the income. If you rent more than two weeks you will have to report the income.
- Mortgage interest is deductible on a second home, if your second home is not a business property. You are allowed to write of mortgage interest on a combined debt of $1,100,000.
These two tax breaks can be very appealing to would-be buyers and showcase an added benefit to owning a second home. Of course there are other added benefits to having a home in the Highlands area. Our wonderful mountain setting offers a fantastic spot for outdoor recreation, fabulous shopping and dining opportunities, and a wide variety of cultural and community events for all to enjoy.
Contact me, Lynn Kimball, today to gain access to all Highlands real estate currently listed for sale. I can get you started on your home search and help you find a second home that will suit your needs.