Tax Breaks for the Under $100K Owner
Do you know all the tax breaks open to a second-home owner? Real estate writer Bob Bruss points out that" if you materially participate in managing your second-home rental and if your 2006 adjusted gross income is $100,000 or less, then you can deduct up to $25,000 of second-home tax loss from your other ordinary taxable income." So what's "material participation?" It includes setting standards for tenants, establishing the rent and approving tenants, even if the day-to-day management is left to others.