Second Homes and Taxes

Second homes have many tax considerations, all dependent if the property is investment or personal real estate and how much you use your second home.

For instance, there are four tax categories for second homes and it’s worth your while to figure out which one you want to be.

Also, don’t forget you may be able to get fixer-upper that is tax free, and if you pile on energy-saving renovations there may even be more you can save.

It’s also important that you know the IRS’s “Five Year Rule” for second homes.

Most important of all, however, is that you keep up with what’s going on in Congress and your state legislature. Laws can change with a single vote, and what’s a tax shelter today could become a big problem tomorrow.