Question: Should I buy a vacation home?
Answer:
Today a vacation home can be purchased for investment purposes
as well as enjoyment. And yes, there are tax benefits.
Some people buy a vacation home with the idea of turning
it into a permanent retirement home down the road, which
puts them ahead on their payments. Another benefit is that
the interest and property taxes are tax deductible, which
helps to offset the cost of paying for a second home. A vacation
home also can be depreciated if you live in it fewer than
14 days a year, or 10 percent of the rented days - whichever
is greater.
Resources:
* "Real Estate Investing From A to Z," William
Pivar, Probus Publishing, Chicago; 1993.
* "The Ultimate Language of Real Estate,'' John Reilly,
Dearborn Financial Publishing, Chicago; 1993.
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