Best Options for Paying for a Vacation Home

[Closet_Gamer]

Just curious the location?

North Carolina

 

[G-Man]

North Carolina

I'm looking at one nearby as well.

 

[cathy63]

...
Could you even deduct the mortgage/HELOC interest cost ?
Assuming a 6% interest rate on $200K , would be ~$12,000 per year. You would need a bunch more in itemized expenses to match the standard deduction of $29,000

Maybe none of it is really deductible. ?

If he's depending on the TCJA provisions being allowed to sunset so he can deduct HELOC interest, that would also apply to the rest of the TCJA too. Standard deductions should go back to around $15K for a married couple or about half that for a single. The $10K SALT limit would also disappear, and he'll have property tax on two homes plus state income tax in NC. That should be enough to itemize, and any charitable contributions or misc deductions over the 2% floor or medical over 7.5% would also help.

 

[OldShooter]

If he's depending on the TCJA provisions being allowed to sunset so he can deduct HELOC interest, that would also apply to the rest of the TCJA too. Standard deductions should go back to around $15K for a married couple or about half that for a single. The $10K SALT limit would also disappear, and he'll have property tax on two homes plus state income tax in NC. That should be enough to itemize, and any charitable contributions or misc deductions over the 2% floor or medical over 7.5% would also help.

Yeah, but what are the chances of a simple sunset? Not high IMO; they will maybe allow some pieces to sunset but mess with and extend others. Predicting is nearly futile.

 

[tryan]

I build a second home lake front in a ski resort town. My boys were 5 and 7 now 23 and 25. The place has more nearly tripled in value. Time is on your side with real estate. We managed to do it when we were young and rented it out before Airbnb and Homeaway existed. It was a simple way to carry the cost.

 

[tryan]

Point being , The carrying costs in the long term will exceed the purchase price. I would be less worried about how to pay for it and more worried about how to carry it for the long haul.

 

[rayvt]

I think it's probably like a timeshare, in that after a while you will get sick and tired of going to the same place year after year.

Save the money and headache and rent a place.

 

[Montecfo]

Banking on future tax law may not be a winner.

 

[stephenson]

Some interesting discussions re how to avoid paying federal taxes ... a bit too close in some cases, for me.