What are the tax implications of owning a home?
Depending on your situation, you might qualify to claim tax deductions during ownership and enjoy tax-free profits when you sell. The key is keeping detailed records. Without them you could lose second home tax breaks and pay a stiff penalty. One or both homes might be eligible for up to $250,000 sales profit for singles and $500,000 for married couples if both spouses meet the occupancy requirements. This tax break can only be used once every 2 years with a few exceptions for employment changes and health related moves.
