2nd Home Purchase

Forum|Forum|1 year ago
October 30, 2024
2 replies
23 views

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?

evelynm

Employee Tax Expert

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.

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".

xmasbaby0

Level 15

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.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**