As we all know, acquiring real estate is an integral part of any investors financial planning. For most of us, our homes are a huge part of our net worth. And as we head into our golden years, aside from all those happy memories that we have accumulated, our homes build equity that can help fund our children’s education and ensure our retirement is a joyful one. It’s time to take a look at how acquiring a fractional ownership vacation home in Costa Rica can benefit you and your family.
Owning a Vacation Home in Costa Rica – Tax Benefits
Perhaps one of the best advantages of owning a second home is that interest payments are tax deductible. Under the tax code, taxpayers itemizing deductions can claim mortgage interest payment deductions on the first $1 million of debt incurred for the purchase of a first or second home. To qualify as a second home, an owner must use the Costa Rica residence for more than 14 days per year.
Renting your Vacation Home in Costa Rica– Tax Benefits
The other option is to rent your Costa Rica property when you are not using it. If you rent your home in paradise for fewer than 14 days you can still qualify for the personal home deduction. And if you rent your property for more than 14, the tax treatment changes, because your second home is now classified as an investment property. Mortgage interest and maintenance are split between personal and investment use, proportional to the number of days of rental use and actual use. The expenses that are counted as investments are deductible, whereas the portion allocated for personal use, including mortgage interest is not.
Owning Income properties in Costa Rica
There are several additional risks attached to buying an income home over a second home. An income property is much more than a retreat in paradise. More often than not, the rental income is used to pay off the properties mortgage, so you need to be sure the residence you acquire has the income generating potential.
Casa Big Sur, Dominical – 1st Class Income Property in Costa Rica
If you are looking for an attractive real estate investment with great income-generating and value appreciating potential, consider the benefits of fractional property ownership in Costa Rica. Positioned in the exclusive community of Escalares, Dominical, Casa Big Sur is a one of a kind luxury vacation home.
Ownership is evidenced by a real estate title, recorded in county records and insured by a title insurance company. Your deeded undivided interest can be mortgaged, willed, sold, placed in a trust or owned by an LLC.
With 5 bedrooms and 6 bathrooms and air conditioning throughout this is an incredible value accruing fractional ownership property. With A/C, a fully equipped deluxe kitchen, master bedrooms with balconies and a beautiful infinity pool this is a one of a kind vacation home in Costa Rica.
Along with seven other fractional investors, you will enjoy a hassle free ownership that includes year round property maintenance and security for a minimal monthly fee. Additional benefits include flight bookings, transportation, tours, and personal gourmet chef as well as an on-site spa, provided by an outstanding team of professionals highly skilled in providing an incredible personalized service.
Each fractional owner is notified on November 15 that the selection process for the coming year will begin. Working on a rotation system the first owner chooses any two weeks he wishes to use in the following year and this continues until all 8 owners have chosen their time. With two rounds of two week selections and two rounds of one week selections owners have plenty of flexibility. Owners are also able to exchange and rent their weeks with other owners.