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Contact Powers Team

If you have any questions or need more detailed information, please feel free to contact me via phone at 301.613.7253 or fill out the form to let us know how we can help with your real estate needs.

Office Location 795 Rockville Pike,
Rockville, MD 20852
Phone: (301) 613-7253
Fax: (301) 424-9290

Vacation or Second Homes

Many people mistakenly think that there are no tax advantages to buying second home.  But, depending on what you do with the real estate purchase of that second home, you may be able to get some tax relief from the IRS.  You will want to go to IRS.GOV for specifics, but here is an idea of some ways you may save when the tax bill comes due.

Depending on the amount of time you spend at your second/vacation home, you may be able to write off the interest as a second primary residence and still rent it out part of the year.  The specifics always change with the tax laws so be sure to check IRS.GOV on the current timeframes and specifics of the benefits.

Also, if you are purchasing a second home after the sale of a previous home, you may be eligible for what is called a 1031 Exchange.  This is a program where you would be able to defer capital gains tax on a property by repurchasing another second home or rental property.  This is important because capital gains are taxed at a higher percentage than other types of income.  Be aware of the time frames involved with the 1031 Exchange at the time of the sale of your home.  You only have a specified amount of time to locate another property (currently within 45 days after transfer of relinquished property) and then settle (usually 180 days) in order for you to reap the benefits of the tax advantage.

The Powers Team has helped several people over the years to realize the dream of owning a vacation or second home.  Contact us today for information on how to get started.  And if you are looking to purchase outside the area, we have affiliated with the leading relocation referral netowrk in the country, working with only the best Realtors throughout the US and beyond. 

 

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