Owning a second home can come with a variety of tax benefits, depending on how you plan to use the property. Whether you’re going to rent it out to a vacationing family or hoping to simply spend your weekends at a new beach house, it’s important to understand the tax rules that apply to each option before buying. Here’s what you need to know:
Happy first day of summer! With the days only growing hotter and mortgage rates continuing to decline, I’m sure buying a summer beach house has become much more tempting. Especially after last week’s mortgage report from Freddie Mac, detailed in our article “Now’s The Time To Refinance Your Mortgage,” many homebuyers are jumping on the opportunity to buy a new or second home at historically low interest rates.
Many homeowners use the terms “investment property” and “second home” interchangeably to describe a property that is not their primary residence, but there are several distinct differences to note between the two.