Second Home Purchase
Now is a Great Time To Buy a Second Home
With more that 30% of all residential home sales now attributed to second home purchases, you might be thinking about buying a vacation home here in the greater Las Vegas – Henderson area. As our population continues to grow mature, the purchase of second homes is expected to grow dramatically over the next 10 years. Fueled by today's continued low interest rates and the tax advantages associated with buying a second home makes a second home purchase a reality like never before. This is an excellent time to consider purchasing a second home as an investment and for a great vacation getaway.
How Do I Save on My Taxes?
There are significant tax advantages to buying a second home in Vegas. Here are several ways to save money on your taxes:
· Mortgage interest on loans up to a max of $750,000.00 is completely deductible for the year in which you buy, build or improve your principal residence plus a second home.
· Points, or loan origination fees, also are deductible no matter if the buyer or the seller pays for them.
· Most homeowners (except for the wealthy and those living in high-priced markets) no longer need to be concerned with capital gains taxes. The capital gains exemption has been increased to $500,000 for married couples and $250,000 for single owners. It can be taken every two years. It is recommended all homeowners retain all receipts of permanent home improvements and of mortgage closing costs. If you do have to pay capital gains taxes, these costs can be added to your adjusted cost basis. We recommend you consult your tax adviser for more information and we would be happy to coordinate this consultation.
· Property taxes are deductible, too, up to $10,000. Whatever property taxes you pay up to $10,000 in a given year may also be deducted from your gross income, lowering your tax obligation.
· Suggested resources: "Tax Information for First-Time Homeowners," IRS Publication 530, and "Selling Your Home," IRS Publication 523. Contact us for a copy of this publication.
Tips to Buying That Second Home in Las Vegas
When we begin your second home search here the greater Las Vegas area, together we will investigate the area thoroughly to allow you to determine what location best fits your lifestyle as well as your finances. It is recommended you take time to visit the area several times to gain a “feel” for what communities are attractive to you. You will be advised on the local real estate market conditions regarding current and past home prices.Understanding the area's sales history will help you determine the market value of the homes and effectively predict their potential appreciation.
A Second Home Purchase is a Solid Investment!
Remember this, vacation homes remain a solid investment and provide substantial deductions on yearly taxes if they meet certain criteria. Because the tax laws are ever changing and complex, I recommend we meet with a tax attorney or certified accountant, to calculate your tax benefits to owning a second home.
If you would like to schedule a second home buying consultation, contact us, your Las Vegas Home Specialist Team for a no-cost analysis of your second home buying needs.