Here are a few ways that our clients are generating wealth with their vacation home
Here are a few ways that our clients are generating wealth with their vacation home
Generate Passive Income
AirBNB, VRBO and many other online platforms have made it easy for homeowners to market their properties. In fact, So much so that,
“Home rentals have outperformed hotels in 27 global markets since the onset of Covid-19”. – New York Times
AirBNB, VRBO and many other online platforms have made it easy for homeowners to market their properties. In fact, So much so that,
“Home rentals have outperformed hotels in 27 global markets since the onset of Covid-19”. – New York Times
Tax Benefits
Depreciation
Restoration, Betterment, and Adaptations
Repair and Maintenance
Pass-through Deduction
Mortgage Interest
Insurance Premiums
Travel Expenses
Depreciation
“You can depreciate most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment”
Restoration, Betterment, and Adaptations Deductions
All three are defined differently but they are treated similarly to the depreciation of the building.
For example, what if you want to increase rental traffic? So, you decide to create a movie theatre or a game room? This would qualify as an adaptation’s deduction.
Repair and Maintenance
Worried about other people’s mistakes or general wear and tear?
Don’t! Repair and maintenance costs are fully tax-deductible in the year they occur.
Tip: It is very important to work with a property manager that is detailed oriented to prevent normal issues from becoming a nightmare.
Pass-through Tax Deduction
Some owners qualify to deduct up to 20% of their net rental income from their taxable income. Here are a few important deductions worth mentioning:
Mortgage Interest
Insurance Premiums
Property Taxes
Travel Expenses
If that’s not enough to get you excited then this option may not be for you, but here are a few other things that are definitely worth mentioning.
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Tax Benefits
Depreciation
Restoration, Betterment, and Adaptations
Repair and Maintenance
Pass-through Deduction
Mortgage Interest
Insurance Premiums
Travel Expenses
Depreciation
“You can depreciate most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment”
Restoration, Betterment, and Adaptations Deductions
All three are defined differently but they are treated similarly to the depreciation of the building.
For example, what if you want to increase rental traffic? So, you decide to create a movie theatre or a game room? This would qualify as an adaptation’s deduction.
Repair and Maintenance
Worried about other people’s mistakes or general wear and tear?
Don’t! Repair and maintenance costs are fully tax-deductible in the year they occur.
Tip: It is very important to work with a property manager that is detailed oriented to prevent normal issues from becoming a nightmare.
Pass-through Tax Deduction
Some owners qualify to deduct up to 20% of their net rental income from their taxable income. Here are a few important deductions worth mentioning:
Mortgage Interest
Insurance Premiums
Property Taxes
Travel Expenses
If that’s not enough to get you excited then this option may not be for you, but here are a few other things that are definitely worth mentioning.
Previous
Next
Appreciation
“Data from the most recent HPES shows that home prices are expected to increase by 18.2% over the next 5 years. The bulls of the group predict home prices to rise by 27.4%, while the more cautious bears predict an appreciation of 8.3%”
“Orlando’s annual median home price for 2020 ($265,000) was 9.1% higher than the 2019 annual median price ($243,000)”
Lifestyle
Who doesn’t dream of the ability to escape all the pressures of life but feel right at home? No more excuses. Always have a destination to:
Celebrate (Anniversaries, Birthdays, Holidays)
Create Lasting Memories
Obtain a New Perspective
Build Family Traditions
Prioritize Health
Health
“Long-term studies have shown a connection between vacations and heart health… women who took very few vacations… were twice as likely to have a heart attack or coronary death than women who had a couple of breaks each year…and men who took fewer vacations were much more likely to die from coronary heart disease than men who took more vacations”
At McNally, we take great pride in helping our owners make
their dream home a reality. Our goal is to make it so seamless it
is ridiculously easy. Come see!
Start taking advantage of ALL the benefits today!
Contact us for complimentary consultation.