September 19, 2007
If you rent out your second home, and are paying out federal income tax on it, you may be eligible for a tax benefit normally used by many commercial property owners. Not commonly known to many smaller investors, the IRS allows commercial property owners (including landlords) to accelerate the depreciation on the personal property (or "building components") at a much faster rate than the "real property" (or "shell") of the building itself.
Considering personal property can make up 20% to 60% of a building's value, the tax benefits can run into the tens or hundreds of thousands of dollars for more expensive second homes that are rented out.
For more information visit www.vacation-finance.com
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