[Rhodes22-list] Second Home interest

[pestyone57]

Todd,

Thank you.  That is pretty concise.

Philip


----- Original Message ----- 
From: "Todd Tavares" <sprocket80 at mail.com>
To: <rhodes22-list at rhodes22.org>
Sent: Friday, December 03, 2004 10:20 PM
Subject: [Rhodes22-list] Second Home interest


  It would be pretty unusual for the interest on a loan for you Rhodes 22 
NOT to qualify as deductible interest. How much of the interest that is 
deductible depends on when you took out the loan and how you used the 
proceeds of the loan. It also depends on your income and the combined 
mortgage balances of your first and second homes.  But most of us here do 
not carry that amount of mortgage debt ($1,000,000+)or make over the income 
limits ($142,000?) except a few. (computer gurus, business owners, and 
'cargo' airline pilots) ;-D

    You just can not have it up for sale during the year. As far as 14 days 
on board?  If you had it rented out for any part of the year, you would then 
have to use it more than 14 days or more than 10% of the number of days that 
you had it rented it out at fair rental; which ever is longer, or you must 
consider it rental income property. Enclosed head?  This is the only gray 
area in the IRS rules. It only has to have "toilet facilities". Does it have 
to be enclosed or a porcelain, flushable head? That is debatable I'd guess. 
Don't ask and - they won't tell?

  The home/boat must qualify as a home..."A home includes a house, 
condominium, cooperative, mobile home, housetrailer, boat, or similar 
property that has sleeping, cooking, and toilet facilities." (period)


  So for most of us here, the interest (or part of it)on the loan for a 
Rhodes 22 should be deductible. To see if your interest qualifies, check out 
IRS Publication 936  "Home Mortgage Interest Deduction"


Todd
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