Selling Your Appreciated Vacation Home? What About Taxes?

Got a vacation home you want to sell? Be careful.
The tax laws that apply can be tricky…and costly!

What exactly is a “vacation home.”?

Seems obvious, doesn’t it?

Well, we’re dealing with the IRS so it isn’t.

If you have a home that you rent out
and use personally, the IRS defines it as a “vacation home.”

So what? . . . you may ask.

The answer is that the definition is important because special tax-rules apply to any gain or loss you incur when you sell.

And that’s why I wrote my new article. To explain in plain English exactly what you can expect from the IRS when you sell your vacation home.

Three scenarios to consider carefully.

Scenario #1: In this scenario, the vacation home is your second home.

This raises the question about the kind of exclusion break you’re going to get . . .or not get. And whether any profit will be taxed as a capital gain . . . or not. You’ll find the answers, and more, when you READ my new article.

Scenario #2: In this scenario, you’ve rented out your vacation home.

This means you’ve probably deducted depreciation for rental periods. If so, you’ll pay at a special federal income-tax rate on the amount of gain attributable to the depreciation. What is that tax rate? You’ll find out when you READ my new article.

Scenario #3: In this scenario, you used your vacation home, for a time, as a principal residence.

Here’s where things get interesting, and in a good way. You see, you might be able to claim the tax-saving principal-residence gain-exclusion break depending on your specific situation. How might that work? READ my new article.

Want to handle your tax situation the right way when you sell your vacation home (that’s probably appreciated in value)?