Vacation Home Loopholes
I have a duplex that I want to exchange next year for a Cabin in Tahoe. From what I understand it can only be used up to 14 days (or 10% of total rented time) for personal use, otherwise it is not considered a rental property.
I wanted to use the property 1 week each month for my family. The only loopholes I see now are:
-Weekdays spent maintaining and repairing are not considered personal use. I would actually work on the property a maintain a log and receipts. This along with the 14 personal use days should get me 7 full weeks.
-Rent to friends or extended family and have them invite my family as guests. The downside is Rent its actually being paid.
Anyone have any other legitimate work-arounds to finding time to spend at a vacation rentals?
Down the road I expect to not have to rent it out at all and have a full time vacation home. Any repercussions to that? Will I have to recapture any depreciation then?
Thanks
Quote:
On 2005-05-11 16:30, blueford wrote:
Why not just bite the bullet, rent it out for a year and then convert it to your vacation home?
For tax advantages. I can depreciate it and write off improvements.