The Last Chance Millionaire It’s Not Too Late To Become Wealthy

“Have you seen the bumper stickers on cars with slogans such as “My other car is a Harley-Davidson”? Boomers might well have a sign on their front lawn saying, “ My other home is a yacht.” As more people are discovering, when you boat or motor home can qualify under the Internet Revenue Service definition of a “primary or secondary residence,” you can deduct the mortgage interest on it just as you deduct the mortgage interest on your primary home.”

“The definition in the IRS code is: “a house, condominium, co-operative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.” This means that interest on a loan taken out to buy a fully equipped boat or RV qualifies as tax-deductible, provided you hold a title or similar ownership papers.”

“A cottage or condo that you use a certain number of weeks a year but rent out other times may be regarded, under certain guidelines and parameters, as a second home for tax purposes. That may also be true for a timeshare or fractional interest property at a resort, a suite in a condominium hotel, or even a share amounting to several weeks a year in various properties owned under the banner of a destination club. Rental property deductions are declared on a different schedule of your tax return, but the end result is the same. Your professional tax prepare will help you with the appropriate way to deduct qualified mortgage interest.”

“When considering investing in a second home, most people ask themselves, “What will this second home cost us?” But after understanding the financial and personal advantages of a second home, the question really becomes, “What will it cost us if we pass up this opportunity to invest in a second home?” Given the appreciation in value of second homes in communities across the country, it may be smarter to by your dream vacation hideaway at today’s prices, using leverage (that’s the drag that actually makes your money soar, remember), than to wait a decade or more when prices could be considerably higher.”

Douglas R. Andrew in The Last Chance Millionaire It’s Not Too Late To Become Wealthy
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