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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2829
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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My wife and I make about $175K and are considering

Customer Question

My wife and I make about $175K and are considering purchasing a larger home. We would be maxing out the equity in our current home to use for a 5-10% down payment and the rest either as reserves and to pay off auto loans in order to eliminate the monthly payment. Rental income on our current home would easily cover the PITI on the maxed out Equity loan. My thoughts are that the higher mortgage on a larger home would benefit us deductions wise. In addition, we would also be considering a time-share purchase which would allow our family to continue our already 2-3 trips per year and still get another deduction. Again, my thought process is with our income we need as many deductions as possible, correct?
Submitted: 5 months ago.
Category: Tax
Expert:  Barbara replied 5 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Different deductions apply to personal residence vs. rental property.

Deductions available for personal residence are usually mortgage interest, real estate taxes and reported on Schedule A.

Deductions for rental property include all expenses for the conduct, maintenance, and management of the rental property. Income is also reported. Schedule E is used to report income and expenses.

https://turbotax.intuit.com/tax-tools/tax-tips/Rental-Property/Rental-Property-Deductions-You-Can-Take-at-Tax-Time/INF26315.html

As to the timeshare, you can deduct property taxes if you are a "deeded" owner.

https://ttlc.intuit.com/questions/1921979-can-i-deduct-timeshare-fees

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 5 months ago.

Just following up with you to see if you have any other questions or concerns. If so, please let me know, and I will be happy to assist you further.

Best regards,

Barb