I'm scheming a rational response to the curtailed mortgage interest and property tax deductions, esp. for blue staters. Establish your primary residence and vacation home as a Smith Family Properties, LLC. Take business deductions for principal, interest, repair and maintenance, property taxes, property insurance. Pay rent to each.
The downsides would be loss of capital gains deduction at sale, and loss of stepped up basis at death. Any others that I'm not considering?
The downsides would be loss of capital gains deduction at sale, and loss of stepped up basis at death. Any others that I'm not considering?
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