Own an Incredible Telluride Home
There are several ways to acquire an incredible Telluride home. Many homeowners have opted to make their abode in Telluride a second (vacation) home. Due to low supply and high demand, if you are interested in owning a home in Telluride, you’ll want to make a purchase in the near future. The continuous growth of property values in the area provides a definitive reason to take the leap as soon as possible.
When considering making your second (or even first) home in Telluride, Colorado, you’ll need to nail down the following: the type of property you desire, ideal location of said property, and naturally, your budget for this purchase. In terms of exploring the financial feasibility of owning a Telluride home, it is best, when considering a mortgage on a home, to obtain an estimate of good faith, which should be processed by a Colorado or Telluride area mortgage company. If pre-existing homeowners decide to purchase a Telluride home, tax breaks are available. This opportunity relates to second-home owners, specifically. This extra home can serve multiple purposes, such as: a family vacation destination, investment property, rental income, or a main dwelling during retirement. There are various tax laws that apply pertaining to the specific purpose of the second home. Your Telluride mortgage lender will be able to explain the various laws to you as you begin your home search, but some of the basics are included herein for your consideration.
In terms of personal use, as long as your Telluride home is used as a non-rented second residence, mortgage interest can be deducted. This works the same way as mortgage interest deductions for a primary home. Up to one hundred percent of the interest the homeowner pays on no more than $1.1 million of debt, secured by first and second homes, can be deducted. To clarify, the combined maximum amount for both the first and second homes is $1.1 million. In addition, property taxes on the second home at Telluride can also be deducted. However, as with a primary home, the cost of utilities, insurance, or upkeep related to the secondary home cannot be deducted. The exception to this rule involves claiming a home office deduction if the second home is utilized for purposes related to business.
When homeowners decide to rent out their property, the rules related to taxes become more complicated. Under the second home tax laws, if the homeowners rent the property out, it can only be rented out for no more than two weeks before the income has to be reported to the IRS. If the homeowners use their second home in Telluride for more than ten percent of the duration the home was rented or for more than two weeks, the dwelling will qualify as a personal residence; therefore, the loss from the rental cannot be deducted.
Given these tips for those in the market for a home in the idyllic Telluride area, there are various options which allow different affordable ways to own a second home. Owning a Telluride home as a second residence is one of the best options to affordably invest in prime real estate. Plus, the invaluable memories made by your family and friends at your Telluride home will last a lifetime.