Even if you love your Miami Beach home and have not thought about buying a second waterfront Miami Beach estate, you may reconsider after learning about the tax breaks available to those who own a Second Home in Miami Beach. Many politicians and celebrities use their ownership of several Miami Beach luxury homes to ease their tax burden and so can you! Buying Miami Beach real estate is good for the South Florida and national economy on all levels, so our government grants some special tax breaks to encourage Miami Beach Sellers and Buyers to own a Second Home in Miami Beach. Low interest rates on Miami Beach properties may make this option even more viable, too!
If you do not rent out your South Beach home, or your second home, all interest up to $1.1 million can be deducted from your income. If you decide to rent out a Miami Beach waterfront island home things change a bit and you have to report that income. However, if you rent the Miami Beach estate is fourteen days or less, it does not count. You could rent your home out for $30,000 for one week and the IRS would not care. It only counts past that fourteenth day.
In addition, you can deduct the property taxes from each and every Miami Beach luxury waterfront home that you own. Lastly, when you own a Second Home in Miami Beach it can allow you to reside in a state with more favorable taxes. As long as you live in a Miami Beach for over half of the year, you can file your taxes in that state. Enjoy weekend getaways and tax breaks if you consider buying a second home.