Adding a tax advisor to your Nantucket Real Estate Team before you begin renting your property will help you position your vacation rental home for success. Take a look at the Compass Rose listing located in Dionis at 6 Eel Point Road and see why.
6 Eel point Road is an excellent candidate for anyone considering the purchase of a second home on Nantucket with vacation rental potential; the zoning and lot configuration allow for the installation of a swimming pool, (which so many of my vacation home renters are looking for these days) and the level of interior finish and the location in Dionis all add up to a home that will bring you and your family joy for years to come AS WELL AS the potential to produce fantastic rental revenue! (See the full listing by clicking on the address link above.)
As promised in my last blog entry, whether you work with me or another professional real estate agent, it’s critical that you have one on your team if you are entertaining the idea of making your vacation home available to rent, (even if only for a week or two a year). Your Real Estate Agent can share their accumulated knowledge and help position you for the most successful purchase and subsequent rental program possible.
For instance, did you know this little tip about making your vacation rental home available as a short term rental? My area of specialty is real estate sales and rentals and I don’t pretend to be a Tax Expert. However, simply from exposure to different opportunities available to my Buyer Clients over the years, I know and other real estate professionals know, information that a Buyer Client wouldn’t necessarily know about tax benefits associated with Short-term rentals as outlined in the great article below from BankRate.com):
Short-term Rental Advantages:
“When you or your family spends time at your second-home retreat as well as rent it for part of the year, the tax rules change. But exactly how much depends on the precise breakdown of the days you and renters are in the house.
The best tax deal is for short-term rentals. These are situations where your property is rented for 14 or fewer days. Money received for two-week-or-less rentals is tax-free.
“This issue comes up every time there is a special event,” says Luscombe. Residents head out of town to avoid the increased congestion caused by special events such as the Super Bowl or music festivals, lease their homes to visitors coming in for the festivities, and pocket the payments without any worry about reporting the income.
It doesn’t matter if you got $20,000 for the week those football fans leased your condo near the stadium. The IRS isn’t entitled to a cent.” See the entire Bankrate.com article.
This post is the second in a series of entries; Purchasing a Nantucket Vacation Home with Rental Potential and is tagged as such. Watch for other entries tagged this way with links to information about Financing A Vacation Home Purchase, How to Price Your Nantucket Vacation Rental, How to Furnish Your Vacation Rental, Should You Utilize Third Party Advertising Channels Like HomeAway and FlipKey and more information specific to Nantucket when considering whether or not to rent out your vacation home.