Those who are looking for a vacation home in Breckenridge or another vacation town should consider some of the potential tax benefits that they are eligible for. There are several good Breckenridge, CO real estate options available to anyone seeking a second vacation home or a rental property. The biggest tax benefits and deductions are available to those who purchase Breckenridge, CO real estate for the purpose of renting it the majority of the time. However, even a second home purchased from Breckenridge, CO real estate can be eligible for several tax benefits. The tax breaks encourage investors to purchase second homes and rental properties, and investors can create a successful business just by renting properties out in Breckenridge.
Save money while earning an income
The best part of purchasing a vacation property is that you can use it for several tax deductions and there are a wide range of Breckenridge CO real estate options for investors with many different budgets. Breckenridge is unique because it is a resort town that is occupied during particular seasons, but when the town is occupied, rentals are reserved and in high demand. Those who rent their properties for an income can also use their home for up to 14 days out of the year or up to 10% of the days that it is rented. So if the home is rented for 200 days, it could be used by the owner for up to 20 days and the home will still be considered a business, so that up to $25,000 of losses can be deducted.
Limiting personal use for tax deductions
By limiting the personal use of your Breckenridge CO real estate purchase you can ensure that you get the maximum number of tax deductions. It should be noted that time spent on maintaining Breckenridge CO real estate is not considered to be personal use. It is recommended to rent a second home that you have purchased from the available Breckenridge CO real estate because you can earn back many of the costs associated with home ownership, and you can also invest in the home. Rental Breckenridge CO real estate properties can rent for substantial daily or weekly amounts during the busiest seasons.
Ask an accountant for more information on tax savings
It is recommended that you speak with a tax advisor or accountant regarding detailed information on the tax savings you can make with a Breckenridge CO real estate purchase. But, it may be advantageous to you to purchase a rental property, especially if you find that you are in Breckenridge quite often, and if you want to earn an income from a town in Colorado that is starting to become one of the most popular resort destinations in the United States. By having Breckenridge CO real estate available you can travel to one of the most popular skiing and resort destinations in the world whenever you want, and you can also make money and expand your asset portfolio, so there isn’t much to lose if you have an interest in the town and want to enjoy its recreation on a regular basis.
