Thinking About a Second Home on Singer Island? Here Are Some Vital Tips
Singer Island is rightfully one of the most popular places in Florida for Vacation and Second Homes. With its gorgeous year-round climate, pristine beaches, and wide variety of leisure opportunities, there are few better options for a seasonal visit.
However, no matter how worthy of an investment Singer Island Real Estate is, purchasing a second home is a very big decision that warrants considerable preparation. As one of the most experienced and knowledge specialists in this luxury community, The McAdams Team of Singer Island Lifestyles has some vital advice for you to keep in mind before you take this huge step.
- For starters, it’s always important to begin your decision by seeking as much financial advice as possible. Consult with a trusted accountant or tax advisor before and during your search, as this will better ensure that you make an informed and affordable decision.
- Keep in mind that owning a second home can alter your financial status and thus your tax obligations. For example, if you rent your home for less than 14 days a year, you are not required to report any rental income, meaning you can deduct your mortgage interest and taxes on your personal income tax. However, a rental of more than 14 days must be reported to the IRS along with all the relevant income and expenses, such advertising the renal, maintenance and upkeep of the property, insurance, and so on. These can be listed as deductions.
- If you use the home at any time during the year, your expenses and the use of the property will need to be reported and deducted from the rental expenses. Thus, you will want to keep very accurate records for your property, preferably with the help of a financial advisor that specializes in rental income.
- If you don’t rent your vacation home out, you can take allowable expenses – such as mortgage interest, taxes and insurance – as itemized deductions on your Schedule A.
- If you end up selling your rental or vacation home, you will need to report it as a gain or loss on the Schedule D, Capital Gains and Losses. You may have other options regarding the sale of your home, but should check with your financial advisor for the latest information.
Needless to say, Singer Island Lifestyles will do its part to provide you with the most desirable and affordable Singer Island Real Estate. When you are ready to view the available homes, just give us a call. We will be happy to find you the perfect second home that will meet all of your requirements. Call our office at 561-842-2308, Jimmie at 561-385-1450, or Judy at 561-358-0716.