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Thank you so much cathy63 for responding. I love this forum because there are some knowledgeable folks on a wide range of topic. I'm glad I joined this forum more than 15 years ago.

Lets assume it is a single person LLC (just the husband). Right now, we file our personal taxes as married filing jointly. Can you file your business taxes with your personal MFJ taxes and will any business losses offset any tax payment for your personal taxes? Hopefully its clear on the...

Same here. It will be 99% me. Have you ever been audited by the IRS? Just trying to make sure what not to do to trigger an audit.

Timely topic. I'm thinking about setting up an IT consulting LLC targeting small businesses. I don't expect to bring much in. Are there any tax benefits of including my wife as a partner in the business? Would love to hear from others on the steps they have gone through to setup an LLC and some...

For us, it will be our weekend getaway and most of the time we will be on the beach.

Thanks for all your insights. I'm looking at the financials now. I do think it will be possible to meet my neighbors above, below, and next to you.

It seems like you have a lot of knowledge on co-ops. Thanks for your insight and responding to this thread. In my area, I'm leaning toward a co-op at the beach as opposed to a condo. The co-op is at the price point that I'm looking for. We have put a contract on a co-op at beach this week. I'm...

Virginia

That's the fear I have. If I purchase a co-op outright now and later need to sell it in the future, then financing by the potential buyer would not be easy or possible at all. It would have to be a cash sale. This is a co-op with an ocean view on the east coast but not in New York that I'm...

I'm looking at one nearby as well.

Is anyone aware of lending institutions that will provide mortgages for a co-op if the co-op is considered your second/vacation home? It seems based on my research you have less flexibility from a financing point of view for a co-op if you are not in the New York area. Also, I'm curious if can...

I wasn't sure if you could get a mortgage on a second home that you own outright. I'ts good to know you can.

Would a co-op unit count toward your personal net worth? Since you don't technically own the property, I'm curious how it would be reported as part of your overall financial picture. Would it be considered a capital asset that you own from a tax point of view?

Any other comments on owning a co-op as a vacation/second home? I'm thinking this may be a great way to get into an ocean view place at a more cost-effective price than a condo with the eventually goal of selling both properties during my slow-go retirement years for 1 property near or on the...

Based on this link, I think my idea would work if I took a HELOC on the second home in 2026. The HELOC interest would be tax deductible. Maybe someone can confirm as well. https://www.rocketmortgage.com/learn/are-home-equity-loans-tax-deductible

Let me do some more research to confirm. If this is possible, that would be great. Anyone else would like to comment on the scenario?

Just curious the location?

Thanks for the insight on this. I will check into that. Also, what about this scenario. You use the HELOC on your primary residence plus a combination of cash to purchase the second home outright in year 2024. Let's assume the value of the second home is $300k and the HELOC amount used were...

Because I currently have an open HELOC on my primary residence with $0 balance. Seems easier.

60-day rule https://www.fool.com/retirement/plans/ira/borrow-from-ira/

Unfortunately, we don't have a T-IRA. All of our tax-deferred dollars is in a 401k. You raise an interesting point; can you replace dollars in a T-IRA if it was used to purchase a second home? I would think you would incur a huge tax bill if you withdrawn the dollars from the T-IRA.

Great to hear. The place I'm looking at does not allow short term rentals. Renting the place has some restrictions as well. We plan to use the place often. Probably every weekend.

Not sure I understand the logistics of this. How would you purchase a second home with a HELOC on the second home before you actually purchase the second home? Not sure I'm following the logic.

Best Options for Paying for a Vacation/Second Home I would like to know what the best options are for paying for a vacation/second home. Specifically, would using a HELOC with a combination of personal cash be the best option to pay for a second home. Another option would be put down x amount...

Based on my research, the co-ops at the beach in my area is more economical than condos. Just need to weigh the pros and cons of each housing type (co-op vs condo).