Buying a second home in great vacation locations like Myrtle Beach, SC can be a very good investment. Some people would rent out their second properties for most part of the year as a source of income, while others simply just drive down to their beachside houses for a quick weekend getaway. Whichever your reason is for your second real estate purchase, the move can certainly be a beneficial one, particularly when you consider the tax benefits. Here are some of them:
If Used as a Personal Property:
If you don’t rent out the property, you can enjoy the following tax benefits:
• Mortgage interest – Interest on the second home mortgage can be deducted, as with interest on your primary home mortgage. The total amount of your debt (for both primary and secondary homes), however, must be within $1 million.