Home, sweet homeIf you have fallen into the category of a second-home owner who is having financial difficulty and trouble selling it, there are things that you can do to try and save money.
  • Wait for rates to come down again and re-finance the loan.
  • Hold off on any planned home improvements.
  • Rent the property. You may rent your property for up to fourteen days before having to report the income to the I.R.S. This is a wonderful option if your property is near a popular annual event that brings in many out-of-towners needing places to stay for the event.
  • Donate the home to charity. You can donate a week for a charity auction and then possibly deduct the fair market rental value from your income taxes. A home can be donated as a Life Estate, which gives the homeowner the right to live there until death and provides a large tax deduction.
  • If you are ambitious you could hire a tax attorney and appeal your property taxes. Many property taxes were assessed on values at the peak of the market, and are now valued much lower.
  • Write up a written agreement or family limited partnership to share the financial burden of the second home with a “partner”. This could be a family member, or not.
To earn more about possible tax advantages of second-home ownership go to Family Education.