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?
Very helpful. I guess when it's time for me to stay at the cottage for longer periods of time, I'll do the tax trade off research first. I don't think 100% of people who own use their home much more than 14 days personally per year when they first buy it (though I'm sure the number is pretty high unless they bought the place just to sell it). Like me, they may buy it with the plan to use it more often as they get older. And some of the periods that they spend in their beach places now are spent, in part, cleaning/maintaining/upgrading if they want to keep their rental in the best shape possible for renters (and maintain it in general). Personally, I like taking care of the place so I don't mind putting that time into the cottage and at least I'm in sunny weather when I'm doing it and when I'm done I get to go to the beach, sit on the porch, visit with friends, go out for good food. I could pay someone else to do it (sometimes I do) but I find I can do some of the work better and cheaper myself even after airfare (and some work I hire out). Since I started exercising a few years ago, I count the work as good exercise, too. If you don't rent your place out, you really don't have to worry about the details of maintaining/upgrading in the same way unless you want to, although all homes need upkeep.
It has all been worth it many many times over for me and others who are enjoying their place at the beach (all dreams have a cost). No doubt, it may not be for someone else.