The purpose of this course is to provide a practical and in-depth analysis of the significant tax planning advantages and strategies related to owning a principal residence for use as a home office and/or vacation home for upper-income taxpayers.
Learning Objectives
- Distinguish a pure residence from a mixed-use residence and how §280A applies
- Discuss the application of §280A to a vacation home that is also rented out during part of the year
- Identify the issues related to the use of the residence as a home office
Major Topics
- Mixed use of a residence: how deductions are limited in rental situations
- Home office: qualification and calculation
- Strategies and planning for renting a principal residence instead of selling it
- Why buying a vacation home can be a very smart investment
- Should you rent or use your vacation home? Opportunities and pitfalls
- Rules for using like-kind exchanges on principal residences and vacation homes
- Understanding the tax rules for acquisition indebtedness and home equity indebtedness
- Maximizing your interest expense deduction in light of limitations in the tax code
