There’s so much going on in the Salt Lake City area, especially with the Sundance Film Festival in Park City. Did you know you could take advantage of your vacation home and local activities and create tax-free income?
Masters Exemption!
Homeowners who rent their homes out 14 days of the year are able to KEEP all the rental income from those 14 days tax-free. This is called the “Masters exemption” because it originated around the Augusta National Golf Course, who earn as much as $20,000 during the annual tournament. Other areas where this is extremely popular are those where the Super Bowl is played each year as well as National Conventions.
The tax exemption for not reporting any of that income is available to ANYONE who rents out their home 14 days or fewer. Tax payers who take advantage of this exemption cannot take depreciation or maintenance deductions, but can deduct mortgage interest and property taxes on Schedule A.
The exemption can only be taken once a year and cannot be used if the home is rented more than 14 days. But how convenient in the Salt Lake area?
There are other tax advantages to renting out your Vacation/2nd Home in the Salt Lake City area. You may want to consult your CPA or tax preparer to take advantage of all of options available to you!
If you are looking for a 1st or 2nd home in the Salt Lake City area, there are many fabulous luxury homes! Contact us today and let’s get started now!
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