topic 2nd Home Purchase in Get your taxes done using TurboTax

2nd Home Purchase

Ebachy — Wed, 30 Oct 2024 23:25:05 GMT

We bought a 2nd 'vacation' home a few hours drive from our present home. There is no mortgage/interest/points and we have not Itemized in recent years. What should I consider when preparing my 2024 Federal Return?

Re: 2nd Home Purchase

evelynm — Wed, 30 Oct 2024 23:34:30 GMT

Without loan interest etc you are still eligible to deduct the real estate taxes each year if you do end up itemizing in the future. Keep in mind the current cap is $10,000 for the itemized deduction for taxes (ie. state, real estate & sales tax). Also, keep track of eligible improvements which can add to the cost basis if you sell the property in the future.

The adjusted basis is essentially what you've invested in the vacation home - the original cost plus the cost of capital improvements you've made.
Capital improvements add value to your vacation home, prolong its life, or give it a new or different use.
They don't include expenses for routine maintenance and minor repairs, such as painting.
Examples of improvements are a new roof, a remodeled kitchen, a swimming pool, or central air conditioning.

Re: 2nd Home Purchase

xmasbaby0 — Wed, 30 Oct 2024 23:35:26 GMT

Unless you are itemizing, there is nothing to enter about the vacation home. If you itemize, you can enter the property tax paid in 2024, subject to the $10K cap for all state and local tax paid in 2024.