Press Release (ePRNews.com) - LITTLETON, N.C. - Jul 20, 2017 - Per, Jan Werner, Top Producer and voted best Lake Gaston Real Estate agent, “For the majority of rental property owners, their primary residents are somewhere else than their secondary income properties. To these kinds of owners, their rental properties are a pure business venture that generates passive income streams.
However, there are several rental property owners who do use their secondary residences for vacationing. In addition, they allow friends and family members to use the property when visiting an area such as Lake Gaston, North Carolina, and not pay for their stay.
Tax Advantages of Vacation Rental Homes
Because nothing is earned during their own vacation stay or stay overs by family and friends, there is no additional taxable income. These situations represent just one tax advantage of owning a vacation rental property, and, there are many more which include the following:
● Rent the property for less than 15 days, and there is no income tax obligation. The Internal Revenue Service allows up to 14 days for rental use with levying taxes on the income generated. Anything above that is considered taxable income, but, is pro-rated. So, if you rent a home on Lake Gaston for 14 days for a special event, even if the rent you charge is $1,000 per day or a total of $14,000, the IRS doesn’t get a cent of that income.
● Rent it out for more than 14 days, or 15 days or more during the tax year, and you’re allowed deductions. Deductions include repairs, maintenance, property taxes, and mortgage interest. This means that you can lessen your tax bill by claiming these expenses. Insurance, casualty losses, and depreciation are likewise deductible. What’s more, you can also write off other expenses such as advertising, travel expenses, property management fees, commissions, and utilities.
● You are allowed to report a loss, should your rental income come out less than your expenses. If you’re not a licensed real estate professional, most or all of your income will be deemed passive by the IRS, even if you assist with the upkeep, so, that’s another break.
Outside of the tax advantages are other benefits, one being appreciation. As the value of the home rises and the mortgage balance decreases, your net worth will rise. Once high enough, it can be used as collateral leverage to purchase another rental property.
In addition to these benefits, you’ll have a dedicated place to stay when vacationing and all the comforts of home. You won’t have to worry about finding a hotel room and be forced to dine out for every single meal. Lake Gaston can also be a place that you can retire to when the time comes.
Jan Werner is a Top Producer at selling Lake Gaston Real Estate.She prides herself in building long-lasting relationships with her clients.She is licensed in North Carolina and Virginia and can help her customers explore all 350 miles of shoreline that encompass Lake Gaston Real Estate by land or water. For more information see http://www.lakegastonteam.com Source :