vacation home


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Vacation Home

A residence other than the owner's primary residence that is used for vacations or other recreational purposes. A vacation home is often rented to tenants during times when the owner is not using it. For example, if a person in Connecticut owns a winter home in Florida, this is a vacation home and may be rented to other persons during the summer. Different tax rules apply for how much interest can be deducted and how much rental income can be declared, depending on how often the owner uses the vacation home, how often it is rented, and how often it is unoccupied.

vacation home

A second home used for recreational purposes. Mortgages for vacation homes generally have higher interest rates than those for primary residences because, if there is any economic difficulty, the property owner is more likely to stop making payments on a vacation home than on a primary residence.Vacation home mortgage interest is deductible the same as for a primary residence, but under current tax law there is a $1,000,000 cap on the amount of debt generating deductible interest.The sale of a principal residence will not result in current income taxes if the gain is less than $250,000 for single persons or $500,000 for married people, but this exclusion does not apply to vacation homes. If the vacation home is used for rental income, there are limitations on your personal usage if you want to deduct rental expenses, including depreciation.
References in periodicals archive ?
Current and future Encore Club residents can look forward to many more updates to the resort, as it continues to shine as one of the leading examples of luxury vacation home living in Reunion.
The median vacation home price was $150,000, down 11.
NAR Chief Economist Lawrence Yun expected an improvement in the vacation home market.
More than half of travelers that stayed in vacation home rental or cottage said they felt very relaxed (51 %) and more travelers that stayed in a vacation home rental (47%) felt their vacation said the experience was unique.
In listing the reasons for purchasing a vacation home, 84 percent of buyers said they wanted to use the home for vacation or as a family retreat; 30 percent wanted to use it as a primary residence in the future; 26 percent wanted to diversify investments; 25 percent wanted to rent the home to others; 16 percent wanted it for the tax benefits; 14 percent wanted the home for use by a family member, friend or relative; and 6 percent purchased because they had extra money to spend.
A survey from the National Association of Realtors (NAR), as well as widespread anecdotal evidence from brokers, suggests that the same phenomenon is also very much alive in traditional vacation home markets.
P decided to purchase another vacation home closer to his new principal residence and treated the purchase and sale of the vacation homes as a tax-free like-kind exchange under Sec.
So we bounced along the beachside path past scores of little guest inns, vacation homes and seaside cafes.
If a couple lives in a community property state and holds the vacation home as community property, there generally will be a full step-up in basis upon the death of either spouse.
Vacation home buyers from across the globe now choose Orlando as their leading location when buying new properties.
7, 2013 /PRNewswire/ -- All Star Vacation Homes announces expansion into Southern California with the acquisition of Southern California Vacation Rentals.
Tourico Holidays, a US-based travel company, has announced a new vacation home rental programme.