Bradley Beach NJ Vacation and Investment Home Taxes

Continuing with our recent discussion about preparing for tax season, I wanted to spend some time this week covering issues related to paying taxes on vacation homes.  Many homeowners in the Jersey Shore area use their property as a vacation home – but can these homes truly be claimed as vacation properties? This article from RealEstateJournal.com answers this and other important questions, such as:

  • When and under what circumstances do I have to pay taxes on rental income?
  • What sort of deductions can owners of rental properties take?
  • If my vacation home is considered a secondary home (not a rental home), what deductions can I take?

 Once you have determined which category your property qualifies as, the chart below gives you a quick overview of what you should expect during tax season:  

Vacation-Home Category Rental Income Deductions Losses
Masters not taxed not available besides mortgage interest and property taxes no tax benefit
Secondary taxed available may possibly report a loss if mortgage interest and property taxes exceed rental income; but can’t carry the loss forward or backward to apply to another tax year.
Rental taxed available can carry losses forward, or back

 Other helpful links on this topic:

To learn more about owning a Bradley Beach vacation home or Jersey Shore real estate, please call me at 732-775-2774 or visit PatrickParkerHomes.com.  You may also begin searching the MLS here!

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About Patrick Parker Realty

Patrick Parker Realty, an independent boutique brokerage located in the heart of Bradley Beach is your local market leader. We understand the demands of a changing real estate market and avail ourselves of the latest industry information and tools to ensure excellent results. Our Commitment to You Our seasoned Real Estate Agents are committed to providing all of our clients, from first time sellers to veteran real estate investors, quality and friendly service. We walk you through every step of the sale process offering the guidance, feedback, and expertise needed to ensure your complete satisfaction.
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