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 ?
You need to look at the deeds to your primary residence and vacation homes, and at the beneficiary designations for life insurance, retirement plans, and trust agreements, all of which can pass to a beneficiary outside the will.
We can use our vacation home all year round and participate in our favorite winter sports too."
'The activity is a glimpse for buyers of their possible second home or vacation home in Davao City.
NAR Chief Economist Lawrence Yun expected an improvement in the vacation home market.
A vacation home that has been turned into an LLC can be gifted to children, in part or in whole.
Such an outcome may be the norm rather than the exception if a vacation home is simply left to more than one individual.
Brian Sharples, the company chief executive officer, said, 'Vacation homes are more attainable than ever for consumers of all ages, thanks to attractive prices and the fact that people can rent them to travellers to help offset the costs.
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.
Another 14 percent were vacation homes, up from a 12 percent share in 2005, said NAR.
In Rivera, the taxpayers used their vacation home for eight days and rented it for 23 days in 2000.
Each master suite is a little structure with its own entry, unlike traditional vacation homes, says Coleman, in which bedrooms all open directly to a dark corridor.
vacation homes. And that worries the National Association of Realtors (NAR), which opposes the proposal.