| Amid these times of penny pinching, luxury items | | | | can cash in, tax free, on a premium rental charge. |
| such as vacation homes are becoming financial | | | | Sometimes that extra few thousand dollars is all |
| burdens for many homeowners. With additional | | | | you need to get over the hump. |
| strains on the household budget, those extra | | | | Donate Holiday Time |
| expenses associated with owning a second | | | | When it's all you can do to pay your mortgage, |
| residence can be overwhelming. It's a shame to | | | | how can you possibly afford to donate time in |
| be forced to sell (if you can), while the market is | | | | your holiday home? Think beyond the initial rent |
| down, and perhaps a more creative solution will | | | | payment, to tax time when you are declaring |
| buy you the extra time to wait out this economic | | | | rental income on your tax return. By donating a |
| storm. | | | | few days rental to a charity to be offered as an |
| Here are some ideas to get you thinking and | | | | auction item, you can receive a tax break for the |
| maybe turn that investment into some additional | | | | fair market rental value. |
| income. | | | | Websites such as vacationhomesforcharity.org, |
| Rent It Out | | | | act as the liason between charities looking for |
| The quickest way to subsidize your mortgage | | | | donations and vacation homeowners looking to |
| payment and monthly expenses is by renting out | | | | donate. |
| your vacation home. By taking advantage of the | | | | In the case of a retiree deciding to move |
| popularity of the internet, you can market your | | | | permanently into their vacation home, expenses |
| place effectively, for very little cost. Free sites | | | | can be higher than anticipated. Those who do not |
| such as or allow plenty of space for descriptions | | | | wish to pass on their estate to family, can donate |
| and images. For a nominal fee, some of the | | | | their home with the condition that they remain |
| vacation websites or provide website templates | | | | their until their death. The tax deduction from the |
| complete with online calendars for tracking your | | | | donation, can translate into a considerable cash |
| bookings and the ability to accept credit card | | | | amount to help maintain the home. |
| payments. | | | | Question Your Property Taxes |
| If you don't want the hassle of managing the flow | | | | With today's declining market, property tax |
| of renters and subsequent maintenance of your | | | | asseessments are not always based on current |
| home, a management company can be secured | | | | market value. In fact, some are still being based |
| for an extra fee. Depending on the company they | | | | on assessments made during the market peak, a |
| take 10 - 25% of the rental fee and look after | | | | few years ago. Some people hire lawyers to |
| cleaning the unit, maintenance, and checking in and | | | | make their case, but most homeowners can |
| out of guests. | | | | simply fill in the tax appeal forms on their local |
| Although the income must be reported, the | | | | municipality website and appeal the rates. |
| owner is eligible to write off a wealth of expenses | | | | You should have some sort of back-up to |
| including maintenance and repairs. Any income | | | | support your argument. For instance, selling prices |
| from a residence rented less than 14 days a | | | | of similar homes in your neighborhood, or the |
| year, does not have to be reported. Those living | | | | results from a private property appraisor. The |
| in an area with a popular annual event such as the | | | | reduction in your taxes could be well worth the |
| Kentucky Derby or Sundance Film Festival, Utah, | | | | money spent to hire this type of professional. |