Second Home Tax Advantages

Second Home Tax Advantages

Looking for a way to make your vacation home a little more affordable? Have you ever thought about turning your vacation home into a business? By answering yes to both of these questions, you may be thinking of saving a little money. By turning your vacation home into a business, you could offset the income that you earn on the home with the expenses that are accumulated through-out the year. For example, if your water heater breaks unexpectedly, you would be forced to pay the repairs out of your own pocket with no tax advantage on your part. However, if you operated your vacation home as a rental for a specified length of time during the year, you would be able to take advantage of the water heater expense as a business expense of the vacation home business. This deduction allows report the expense and offset the income reported by the cost of the water heater, resulting in a lower tax bill— taxes you might already be paying. If this seems like an something that you might be interested in, contact Garcia Tax Enterprises for this and all of your other tax needs.