April 15th has passed but it is never too early to start thinking about how to save money on your taxes for next year. If you own a 2nd home in Park City or Deer Valley, its time to take a look at the tax advantages that come along with your vacation home.
If you and your family use your vacation home exclusively, you can write off all the interest you pay on your mortgage - up to $1.1 million of the total debt you owe for all of your properties. And you can also deduct your property taxes.
When you rent out your Park City home more than 14 days a year, the tax rules get more complicated, because you need to separate out costs between private vacation use, maintenance and rental use. You can still deduct a percentage of your mortgage and property taxes, plus property management fees, and you can even claim depreciation deductions on 80% of your homes value.
Whether your Park City vacation home is reserved for private or rental use, be sure to consult your tax advisor to see how you can save at tax time. For rock solid advice on buying or selling real estate, call Craig Reece at 435-647-8017 or toll free at 866-709-8018. Craig has been a full time Park City resident since 1973 and a full time real estate agent since 1978.