Personal-use time determines vacation-home tax break

Realty Tax Tips – Part 2: Save on loan interest, travel costs

(This is Part 2 of an eight-part series. See Part 1: Recent changes to the $250,000 home-sale tax exemption; Part 3: Moving costs beef up real estate tax deductions; Part 4: Homeowners take refuge in casualty loss assistance; Part 5: Real estate investing generates big tax benefits; Part 6: Tax savings abound with real estate exchanges; Part 7: Home-business expenses add up to tax savings and Part 8: 10 most often overlooked real estate tax deductions.) Millions of U.S. taxpayers own secondary or vacation homes that they use part of the year. But they often fail to maximize their tax savings from their part-time residences. Keeping simple tax records for your second home can result in saving hundreds or even thousands of tax dollars. FOUR TAX POSSIBILITIES FOR YOUR VACATION OR SECOND HOME. Depending on your personal-use time of your vacation or second home, Uncle Sam puts you into one of four possible tax categories. Purchase Bob Bruss reports online. If you itemize your income t...