Idaho Real Homes Real Estate Office

350 E Kathleen Ave

ste, 400 Coeur d' Alene, Id
83815

1-208-719-9010

Call or text
 

Mon - Fri: 9:00 - 5pm

Weekends by appointment Book your apt Here

Idaho Real Homes Real Estate Office

350 E Kathleen Ave

ste, 400 Coeur d' Alene, Id 83815

1-208-719-9010

Call or text

Mon - Fri: 9:00 - 5pm

Weekends by appointment
Book your apt Here

Last updated on March 22nd, 2023 at 07:50 pm

Tax differences in 2nd Homes

A principal residence and a second home have some similar benefits, but they have some key tax differences. A principal residence is the primary home where you live and a second home is used mainly for personal enjoyment while limiting possible rental activity to a maximum of 14 days per year.

tax difference in 2nd homes

Under the 2017 Tax Cuts and Jobs Act, the Mortgage Interest Deduction allows a taxpayer to deduct the qualified interest on a principal residence and a second home. The interest is reduced from a maximum of $1,000,000 combined acquisition debt to a maximum of $750,000 combined acquisition debt for both the first and second homes.

Property taxes on first and second homes are deductible but limited to a combined maximum of $10,000 together with other state and local taxes paid.

Principal Residence Tax Credit

The gain on a principal residence retained the exclusion of $250,000/$500,000 for single/married taxpayers meeting the requirements. Unchanged by the new tax law, the gains on second homes must be recognized when sold or disposed of.

Tax-deferred exchanges are not allowed for property used for personal purposes such as second homes. Gain on second homes owned for more than 12 months is taxed at the lower long-term capital gains rate.

This article is intended for informational purposes. Advice from a tax professional for your specific situation should be obtained prior to making a decision that can have tax implications.  And of course subject to change at a moments notice depending on any tax law changes.

Other home buyer and seller tips

Why not to use the agent at the Open House

What is included in a purchase contract

Idaho Real Homes serves the North Idaho Real Estate Market.  Including Coeur d Alene and Sandpoint.

Coeur d Alene Homes for Sale

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