How to Get the Deduction
If you own a home and itemize your deductions on your tax return, you can usually deduct the property taxes and the interest you pay on the mortgage. If you buy a second home, you can deduct the taxes and mortgage interest on that property, as well.
Kay Bell, a tax journalist at the blog Don't Mess With Taxes, explained that a yacht can qualify as a second home, provided it includes sleeping quarters, a kitchen and a toilet. This strategy probably isn't practical for those who can't afford a second home — particularly an expensive one that floats. But even if you own just one home, you should learn about the tax breaks for homeowners.
The wealthy might try to keep these and other tax strategies as their secrets. But, if used correctly, these tax breaks and tax loopholes can benefit everyone else in cutting state and federal taxes.
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