Tax Considerations When Selling a Vacation Home
Posted by Shawn Clayton on
Rules differ for vacation homes and rental properties, and whether a second home is designated as one or the other can influence seller options for financing as well as carry tax implications for both buyer and seller. Options for vacation homes, such as waterfront real estate, may not be clear cut. When it comes time to sell an Ortley Beach vacation home, there also are tax implications that hinge on whether the property was ever rented, for how long, and how it was used by the owner and the owner's family. Numerous variables exist.
A second home, just as a primary residence, is considered a capital asset, subject to either short-term or long-term capital gains based on the length of time the home was owned. There are also possible tax…
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