tahoehome

South Lake Tahoe Vacation Rentals May be Assessed on their Personal Property?

Jun 21st 2014 at 3:47 AM

When you own a vacation home, you are responsible for it, but it’s worth it for many. It's going to give you some extra money when you rent the place out. When it’s vacant, you can bring your friends and family for a getaway.

Just watch out for those taxes.

The amount of time you actually stay there during the year does reflect on your taxes – not your normal personal income taxes, but the additional taxes. There are three situations you need to be aware of in the event this is a second home:

1) Do you rent to others the full year?
2) Do you rent to others only on a part-time basis?
3) You use the place yourself, only renting out those few months you aren't there.

If you limit the personal use to the following, you have basically turned your property into an investment.

1) Being there only 14 days or less
2) Only using it 10% of the actual rental time.

Having a property as an investment can be very lucrative, but you need to be careful when it comes to the deductions during tax time.

And to add onto this seemingly endless pile of additional taxes, it seems taxes on vacation rentals in South Lake Tahoe may soon be assessed based on the owner’s personal property. This could potentially deter investor in South Lake Tahoe, which can have a ripple effect into the entire community’s economy. Read here for more details on this new tax.

This carries the potential for disaster – as the article in the link above states, inquiries should be addressed to supervising accountant auditor Lynne Petty at (530) 621-5716 or by emailing marcia.woods@edcgov.us. It will take lots of voices speaking up to do something about the new personal property assessment tax.

If you’re thinking about buying a vacation home in South Lake Tahoe, don’t be afraid – you can still make it a lucrative investment. But certainly, caution is necessary, and on occasion, you have to fight the taxman.

About the Company:
The Souers Team at Pinnacle Real Estate Group of Lake Tahoe is one among the leading and experienced real estate companies in South Lake Tahoe region. Whether you are buying or selling, their main objective is to guide you accurately at each and every step of the whole process. They also deal with the real estate properties in South Lake Tahoe neighborhoods. So what are you waiting for, seek real estate opportunities by giving them a call at: 530.577.0389

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