A vacation home is a property that people buy for weekend retreats or other vacations. Vacation homes are either rented out when not used by the owner or left vacant. In some cases vacation homes may also be investment properties. Learn about what to consider when buying a vacation home or passing it on as an inheritance.
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In order to be able to take a capital gains tax exclusion when you sell your home, you have to have lived there at least two out of the last five years. This primary residence definition is critical to taking the tax exclusion when you sell. You cannot exclude capital gains from the sale of a vacation or second home.
A homeowner moved into his vacation home and hopes to avoid capital gains tax when selling the property. If a vacation home has become your primary residence and you want to avoid capital gains, you should wait 24 months after the date you closed on the sale of the primary residence.
According to the FAA, more than 1 billion people will fly the not-so-friendly skies by the year 2015. That's just 8 years from now. If you think thin...