New and Improved Energy Tax Credits for Homeowners

The president signed the Inflation Reduction Act into law on August 16, 2022. It contains some valuable tax credits for homeowners.  When it comes to taxes, nothing is better than a tax credit since it is a dollar-for-dollar reduction in the taxes you must pay (unlike...

Selling Your Appreciated Vacation Home? Consider the Taxes

The tax-code-defined vacation home rules come into play when you have both rental and personal use of a home. Thus, you can have tax-code-defined vacation homes in the city, in the suburbs, and in recreation areas. If you have no combined rental and personal use of...

Tax Implications When Your Vacation Home Is a Rental Property

If you have a home that you both rent out and use personally, you have a tax code-defined vacation home. Under the tax code rules, that vacation home is either • a personal residence or• a rental property. The tax code classifies your vacation home as a rental...

Vacation Home Rental—What’s Best for You: Schedule C or E?

Do you have a beach or mountain home that you rent out? If the average period of rental is less than 30 days, you likely have a choice—either • claim the income and expenses on Schedule C, or• claim the income and expenses on Schedule E. When Is Schedule C a Good...

The Principal Residence Gain Exclusion Break

The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities. Unmarried homeowners can potentially exclude gains up to $250,000, and married homeowners can potentially exclude up to $500,000. You as the seller need...