Deduction?

[rayelias]

We finally made the decision to find a DVC resale. It's just the 2 of us, and we're hoping to find a smaller contract that suits our needs.

Anyhow, maybe some of the more experienced owners can chime in on this.

Is your DVC purchase deductable as a "2nd home" per IRS guidelines? I'm no accountant, but if I understand correctly, up to a certain figure, many 2nd home expenses are deductable against ordinary income, same as primary residences - interest, maintenance, taxes, depreciation, etc.

Anyone more informed about this? If you finance, can you deduct the interest? Are maintenance fees deductable? I read somewhere that RE taxes are, can anyone confirm?

I know the caveat - that tax advice is related to the individual and their circumstances - so any advice given is under that heading.

Thanks much!

 

[CarolMN]

If you finance the purchase with a home equity loan, you should be able to deduct the interest paid. The interest from any other financing method is not deductible.

The only thing we deduct is is the protion of our annual dues that is attributable to property taxes.

AFAIK, that's all you can deduct under "normal" circumstances and "normal" use.

I am not a tax accountant. I am not an attorney specializing in taxes. I don't think I know anyone who lives in PA (my loss, I'm sure).

Best wishes -

 

[dvc guy]

We live in New York and paid cash .We deduct real estate taxes, and have been for the past 6 years.