Often when the stock market is stressed, it is a great time to buy a home. Is now any different? Perhaps the most dominant conversation on the lips of Americans today is the "economic crisis". The crisis specifically refers to the state of the stock market. With the stock market in such a dire way right now, perhaps it is again time to buy Outer Banks real estate.

Some reasons that Outer Banks Real Estate is looking more attractive

  • Interest rates have again crept low under 6%
  • The stock market is no place for your money...look at the proposed bailout
  • Outer Banks investment homes have gone down in price which means your capitalization rate is higher. (It is getting as high as 7 & 8%)
  • The Outer Banks is still under priced for coastal property.
  • Buying an investment property is different than purchasing a 2nd home or vacation home
  • Vacation homes are still good for tax deductions

Vacation Home Tax Deductions:

This information is from Irs.gov. Publication 527 By no means is it any representation of tax or legal advice. For tax or legal advice, consult a tax or legal professional.

Vacation Home Rental Expenses

This section discusses expenses of renting property that you ordinarily can deduct from your rental income. It includes information on the expenses you can deduct if you rent a condominium or cooperative apartment, if you rent part of your property, or if you change your property to rental use. Depreciation, which you can also deduct from your rental income, is discussed later under Depreciation.
 
When to deduct. You generally deduct your rental expenses in the year you pay them.
Vacant rental property. If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant.
Pre-rental expenses.You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent.
Depreciation.You can begin to depreciate rental property when it is ready and available for rent. See Placed-in-Service Date under Depreciation, later.
Expenses for rental property sold. If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintainin
Posted by Mike Bishal on
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