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Rita

margarita brocolia
Dec 1, 2004
5,318
1,031
Dune Allen Beach
On that subject, Paula, I believe there are limitations on the number of days one can stay in his/her own unit, and still be able to claim it as an "investment property." Perhaps an accountant can chime in on that. It should be something to consider when talking real dollars going to Uncle Sam.
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no accountant here but isn't it 14 days


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Paula

Beach Fanatic
Jan 25, 2005
3,747
442
Michigan but someday in SoWal as well
On that subject, Paula, I believe there are limitations on the number of days one can stay in his/her own unit, and still be able to claim it as an "investment property." Perhaps an accountant can chime in on that. It should be something to consider when talking real dollars going to Uncle Sam.


Yes, you are right (I forgot about that, so thanks for the clarification). You can spend more than two weeks there if you are using that time to work on the rental, do business, etc., but that certainly wouldn't add up to several months of staying there. I'll have to look into that when I'm ready to spend more time in SoWal. It will be a while before I'll be spending several months there.
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
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no accountant here but isn't it 14 days


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yes. If you stay in it more than 14 days, you cannot treat it as a rental property for tax purposes. All the revenue is income, but I don't believe you can deduct any of the expenses other than taxes and interest (subject to the $1 million mortgage cap). For tax purposes, it simply becomes a second home if you use it for more than 14 days per year.
 
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Rita

margarita brocolia
Dec 1, 2004
5,318
1,031
Dune Allen Beach
yes. If you stay in it more than 14 days, you cannot treat it as a rental property for tax purposes. All the revenue is income, but I don't believe you can deduct any of the expenses other than taxes and interest (subject to the $1 million mortgage cap). For tax purposes, it simply becomes a second home if you use it for more than 14 days per year.

see Paula's previous post for some further qualifying info.

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Paula

Beach Fanatic
Jan 25, 2005
3,747
442
Michigan but someday in SoWal as well
Let's hear from one of the tax people. I did know (and forgot) that you can only stay in it about 2 weeks if it's a rental to get full rental tax benefits. You can, however, stay longer if you are there for business - e.g., painting, maintenance, upkeep, deep cleaning, etc. Is that correct? You have to document what you were doing there and keep dates/receipts/etc. of the work that you were doing. Anyone know if that's true.

And, if someone like me decides to rent the place part of the time and stay in it part of the time (thats some years away), what if anything I can deduct (e.g., as Fisher says, taxes and mortgage interest?)?

Most useful discussion.
 

baky

Beach Comber
Jul 18, 2009
11
0
Kentucky
:clap: Well I will pass everyones forum names to the seller...just kidding...after debating and reading...I think it would be easier to just rent.....not because of the income but because it seems there are alot of other hassles besides the money....and life is too short for hassles.
 
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fisher

Beach Fanatic
Sep 19, 2005
822
76
Let's hear from one of the tax people. I did know (and forgot) that you can only stay in it about 2 weeks if it's a rental to get full rental tax benefits. You can, however, stay longer if you are there for business - e.g., painting, maintenance, upkeep, deep cleaning, etc. Is that correct? You have to document what you were doing there and keep dates/receipts/etc. of the work that you were doing. Anyone know if that's true.

And, if someone like me decides to rent the place part of the time and stay in it part of the time (thats some years away), what if anything I can deduct (e.g., as Fisher says, taxes and mortgage interest?)?

Most useful discussion.

You treat the rental income as income on your tax return and you can deduct the same items you can deduct related to your primary residence.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
:clap: Well I will pass everyones forum names to the seller...just kidding...after debating and reading...I think it would be easier to just rent.....not because of the income but because it seems there are alot of other hassles besides the money....and life is too short for hassles.

:blink: Geez, was it something we said?

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gmarc

Beach Fanatic
Jan 19, 2009
506
65
i just recently did some research on the deductability of expenses if you rent your home and use it more than 14 days. it seems that you can deduct a % of your expenses based on the # of days you use it. for example lets say you rent it for 70 days and stay in it personally 30 days you can write off 70% of your expenses. THE BIG DIFFERENCE IS IF YOU USE YOUR RESIDENCE MORE THAN 14 DAYS PERSONALLY YOU CAN NEVER TAKE A LOSE for the year. i'm pretty sure that 100% of people who own one unit use there home much more than 14 days personally per year. lets here from people who rent there unit and use it more than 14 days a year.what are all the rules?
 

Miss Kitty

Meow
Jun 10, 2005
47,015
1,123
67
:clap: Well I will pass everyones forum names to the seller...just kidding...after debating and reading...I think it would be easier to just rent.....not because of the income but because it seems there are alot of other hassles besides the money....and life is too short for hassles.

:blink: Geez, was it something we said?

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:rotfl:...oh, dear.

baky....for what it is worth...we own in WC and have always used WC to rent out our home (condo) when we are not there. Yes, one pays a premium for the service they provide, but it works for us. We were on the fence about renting it out, but once we realized it was a no hassle proposition, any money we make is gravy.

Congrats on making an informed decision and enjoy your vacation time in sowal...you might end up in the Kitty Kondo sometime! :cool:
 
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