More and more people are realizing that with today’s depressed prices of Palm Beach County real estate, it might make more sense than they had originally thought for buying a second home. There are two main reasons why people buy a second home, maybe just to get away from the day-to-day stress and the investment opportunities. Whatever your priority, owning a second home may be the right choice for you and your family.

There are many tax advantages that come with owning a second home. You can write off 100% of the mortgage interest. You can write off property taxes. New IRS rules allow for a capital gain on the principal residence whenever people sell, up to $250,000 for singles, and up to $500,000 for couples. Living in your second home for two years or more entitles you for the same capitol gains break.

If the investment return on your purchase of a second home bears more than the bank interest will pay you, then you have made a smart investment. Another aspect to consider is that you have the option to rent in order to cover your second mortgage. You need to decide if you are going to declare it as a vacation home, or rental property though, because the IRS has different rules for both. Also remember that if you declare it as a rental your mortgage could be slightly higher.

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Shopping for that perfect home in the Boca Falls gated community? Realtor® Caesar Parisi is ready to help you buy your dream property.

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