Plan a Beautiful Future on Singer Island!

Have you been admiring the beautiful homes on the Singer Island Real Estate market, but haven’t put a toe in the water yet? As your Singer Island Real Estate agents, we’d like to offer a few reasons why moving to Singer Island may be more feasible than you thought!

You may already know that Singer Island is home to white sand beaches, deep blue waters, and a climate that brings paradise to your front door! And since there is no State income tax, paradise can have economic advantages!

If you're not ready to move today, you may still benefit from Federal income tax breaks that are allowed for second homes. Buying a vacation home while real estate is affordable and mortgage interest rates are low, could help you start enjoying the Singer Island lifestyle! Once you are ready to make Singer Island your year-around home, your vacation home can become your primary residence. With good planning and sound advice from a professional tax preparer, this strategy could work for you!

Here are the basic guidelines. Please remember these are offered as points of discussion - consult your tax preparer for IRS rules.

1. Mortgage interest on a second home is deductable from your itemized Federal income tax return, if the total combined debt balance of your first and second home does not exceed 1.1 million.

2. Property taxes paid on a second home are deductable from your itemized Federal income tax return.

3. If you rent out your second home for 14 days or fewer during the year, you do not need to claim the income from this short-term rental. You get to keep the income tax-free and still deduct the mortgage interest and property tax.

4. If you rent out your second home for 14 days or more during the year, you must claim the rental income on your Federal income tax. You would be able to deduct rental expenses, such as property maintenance. The amount of mortgage interest deduction allowed would depend on how much you occupied the second home during the year. Other tax strategies in this case may include claiming depreciation, which is allowed on rental properties. Your income level affects what deductions are permitted; see your tax preparer.

5. If you convert your vacation home to your primary residence, live there for a minimum of two years, then sell at a profit, a portion of your profit could be excluded from Federal income tax. Exactly how much depends on how long you owned the home as a vacation property vs. a primary residence, and if you took any depreciation deductions while it was a vacation home.

Good planning and good professional advice can make all the difference! If you are interested in buying a Singer Island vacation home or condo, or relocating and making Singer Island your year-around home, let us know!  We’ll be happy to answer your questions and provide you with a tour of our beautiful island. Take a look at the current homes and condos available on Singer Island and contact us today!  

Jimmie & Judy McAdams
The McAdams Team
Singer Island Real Estate Experts

Singer Island Florida Real Estate
View Singer Island Luxury Listings
Visit Our Website
Contact Us

Trackbacks (0)

Comments (0)