Do you like FREE money?

golfHave you toyed with the idea of renting out your home on the Outer Banks the times you aren’t there? If so, you’d need to read and follow the rules for rented properties. There are advantages to renting out your vacation home like deducting certain expenses such as mortgage interest, real estate taxes, casualty losses, maintenance, insurance, and depreciation. (please contact your tax preparer or CPA for more details)

However, you can still take advantage of renting out your home and be able to KEEP all the rental income, if your home is only rented 14 days out of the year!

It’s the Masters Exemption!

This originated from homes on or close to the major golf courses. When HUGE tournaments were in area, local homeowners could open their homes to visitors looking to stay for these tournaments. (some were receiving $20,000 in tax free rent during an Augusta Tournament alone) It works great for Golfing communities and other communities as well – like the Outer Banks. The ability to claim the exemption does not need a venue – but it can NOT be more than 14 days – and can only be used ONCE per year.

This tax exemption for not reporting any of that income is available to ANYONE who rents out their home 14 days or fewer. Tax payers who take advantage of this exemption cannot take depreciation or maintenance deductions, but can deduct mortgage interest and property taxes on Schedule A.

The exemption can only be taken once a year and cannot be used if the home is rented more than 14 days.

There are other tax advantages to renting out your Vacation/2nd Home on the Outer Bank. You may want to consult your CPA or tax preparer to take advantage of all of options available to you!

If you are looking for a 1st or 2nd home on the Outer Banks, there are many fabulous luxury homes! Contact me today and let’s get started now!

** This article is not meant as tax advice. Please consult your tax preparer or CPA to find out how this applies to your personal situation.

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