Can you deduct the purchase price of vacation home when you pay cash?
Jan 18
Ron S asked:
I purchased a vacation home early last year for my use only and was able to pay for the home.
Tour guide
I purchased a vacation home early last year for my use only and was able to pay for the home.
Tour guide
I don’t see how you can deduct anything unless it is used for business purposes. Your primary residence is not deductible, only the interest on the mortgage. You may be able to deduct taxes or other expenses, but I doubt it.
Purchase of a home for personal use is not deductible.
Right, personal use purchases have no place on a tax form. Why not deduct the car, the boat and your tennis shoes if you could deduct a vacation home?
The INTEREST and PROPERTY TAXES on the vacation home ARE tax deductible, though. Since you have no loan, the only the property tax is deductible.
- A darn Good Tax Advisor
Yes. You deduct the cash you paid from your bank account balance.
The only thing you can use as a deduction on your income tax is whatever you paid for property taxes.
I have a sneaking suspicion that the percentage of the general population suffering from brain damage from listening to George Bush say “I am the Decider” has increased substantially in recent months.
No you can’t. You could deduct real estate taxes though.