Steamboat Springs second homeowners used to fall into one of two categories:  those that use their Steamboat vacation homes strictly for personal use, and those that see their vacation property as an income-producing investment.

The current economic downturn has blurred the line as more people look to generate extra cash from their second home. With buyers demanding discounts, Steamboat vacation home owners looking to sell have no choice but to accept a discounted price for their property or wait out the market.

Here are ways to generate cash from your vacation home if you don’t want to sell:

Rent

If you rent your Steamboat property less than 14 days a year, you don’t have to report the income.  Rent your condo or home over Christmas week or President’s weekend for the most $$$.

If you rent more than 14 days a year, not only will you have an income stream, but you can take tax write-offs you wouldn’t otherwise be entitled to.  Be sure to consult your tax advisor or CPA.

For hard-core landlords:  Rent your Steamboat condo or townhome yourself through sites like VRBO.com and save the management fees.

Be Charitable and Save on Taxes

Donate a week or two of usage to your favorite charity and deduct the market value for the rent.  If you don’t have a favorite in your hometown, you can use sites like VacationHomesForCharity.org.

For hard-core donors: Donate the entire Steamboat Springs property to charity, keep a life estate, and get tax benefits.

For hard-core Steamboat ranch owners with substantial acreage:  Set up a conservation easement or sell your development rights.  Your ranch land will never be developed and you’ll get tax benefits and/or cash.

Bring in a Partner:

Find a partner who likes coming to Steamboat as much as you do, and you can share usage–and costs.  Partners don’t have to be 50/50.  They can be 75/25 or even 90/10, whatever fits your situation.  Consult your attorney to iron out the details.

Using your vacation home to generate extra cash might be the difference between keeping your place and having to sell it.  If you do need to sell, please call (970) 819-6372 to discuss your options.  We look forward to hearing from you.

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