Tax Advantages of Owning a Second Home
There are several tax write offs that are allowable by the IRS, such as mortgage loan interest, maintenance expenses for proper upkeep, PMI or private mortgage insurance, electric, water and sewer, real property taxes, home insurance, and various expenses.
What’s more, if you rent your Key West home for less than 14 days in a year, then the income received does not have to be reported on your tax return. In years where the property isn’t used, all expenses are deductible. Be sure to check with a tax professional to ensure proper deductions and other tax benefits.
Other Benefits of Owning a Property in Key West
It’s not just tax benefits, there are several other reasons owning a second home in the Keys is a sound investment:
● Less expensive vacation getaways. One reason vacations are scarce for most families is the expense. Having a place you own really cuts down on the expenses of vacationing–
● Dual residency. If you’ve got friends or family which want to apply for residency, this is a great solution. They can claim your address as an established place to live.
● Enjoying the weather. Key West is a great place to escape the cold of the north and midwest. So, you can soak up the sun while the snow falls back home.
● For family members. A second home in Key West not only means a place for family members to vacation, but also a dedicated place to live, allowing you to give your current property to your children when grown.
● A refuge for emergency situations. If bad weather is coming, you’ll have a place to take refuge.
● A wonderful place to retire. When it’s time to retire, you’ll have a tropical island setting to look forward to and since Florida doesn’t have an income tax, a nice little retirement bonus.
Last but certainly not least is having an investment that will grow in appreciation. Because land is at a premium in Key West and there are many waterfront properties, it’s practically guaranteed your second home’s value will increase significantly