Real Estate News: Update for Second-Homes Buyers Taxes Rules

City of Hialeah - Miami Dade County

The fifth largest city in the State of Florida with an area of 20 sq. miles and a Class 1 Fire Department. Hialeah has access to most major thoroughfare - linked by I-95, I-75, the Palmetto and Sawgrass Expressways, and the Florida Turnpike. It is home to Hialeah Race Track and rich with investment opportunities for apts, homeownership, retail and the manufacturing sector. Mayor Julio Robaina serves as strong mayor. His vision to encourage business growth and quality of life for the residents maintains the City of Hialeah as one of the most desirable and stable community in Miami Dade County. See all the details at www.hialeahfl.gov

4/13/2010

Update for Second-Homes Buyers Taxes Rules

If you own a second home be aware that according to the IRS taxpayers who are married and filing jointly can't deduct interest on more than a combined total of $1 million of "home acquisition debt" for a primary and a secondary home.

You may also deduct up to a combined total of $100,000 of home-equity debt on your first and second homes.

If you refinance IRS will allow deduction of interest on the original amount of the loan at the time you refinanced, plus $100,000.

You will also be allowed to deduct loan fees or "points" if the money was used to buy or improve your home. You may not deduct them if you refinanced to lower the interest rate.

Make sure you consult your accountant as IRS rules are frequently modified.