Second home vs investment property: IRS tax rules. If a property was used as both over time, what are the tax implications when the property is sold? Q: I read your article on avoiding capital gains tax on second homes in our Sunday paper. I have a question that is along those same lines, except [...]
Estate planning and capital gains taxes: What you need to know before selling high value property that could be inherited. Q: My parents are elderly and live in Virginia. They own a rental house in California. Since they bought it, the home has increased greatly in value to about $1 million. They are trying to [...]
Will a loan from a family member impact my taxes? The IRS will treat the loan differently, depending on how you pay it back. Q: My mom is giving us money to buy a vacation home. We will pay her back monthly but it's more of a handshake agreement. Will there be any tax implications [...]
Medicaid can penalize you for selling assets, like a second home, for less than they're worth. An attorney can help find the best solution for you and your family. Q: My parents own two homes, one is their primary residence, and the other belonged to my mother’s parents which she received upon their death. Both [...]
When you sell a Second Home, you may not get the tax advantages unless the home was an investment property and can defer capital gains. Q: We are considering selling a second home to find another one closer in proximity to our permanent home. We do not want to sell until we find another house [...]
In 2002, more than 6.5 million existing and newly constructed homes were sold, a new record. Although sales of new and existing homes are breaking records, sales of second homes are increasing faster than sales of primary residences. Sales of investment or vacation homes have increased by 25 percent over the last five years to $50 billion per year and are projected to grow to $150 billion by 2005.
