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Vacation Home

What is 'Vacation Home'

A dwelling other than the owner's primary residence that is used for recreational purposes, like vacations (hence the name). Because vacation homes are only used at certain times, many owners will rent out their vacation homes when they are not using them. For example, a couple living in Maine might occupy a vacation home in Florida during Maine's coldest months and rent it out to other people for the rest of the year.

Explaining 'Vacation Home'

Mortgages on vacation homes typically have higher interest rates than mortgages on one's primary residence, because they have a higher risk of default (in the event of a reversal of fortunes, individuals are more apt to save their primary residence than a temporary one). Nevertheless, most of the other perks of home ownership still apply, athough the restrictions are a bit tighter. If one does rent out the vacation home, then there are limitations as to how long the owner can reside there and still deduct rental expenses. The sale of a vacation home does not allow for the same income tax deductions as the sale of a primary residence does.


Further Reading


Tourism, Vacation Home Development and Residential Tax Burden:
onlinelibrary.wiley.com [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

… of Normative Decision-Making: The Limitations of Legal Economics as a Basis for a Liberal Jurisprudence-As Illustrated by the Regulation of Vacation Home …… of Normative Decision-Making: The Limitations of Legal Economics as a Basis for a Liberal Jurisprudence-As Illustrated by the Regulation of Vacation Home …
heinonline.org [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

The effect of property taxes on vacation home growth rates: Evidence from MichiganThe effect of property taxes on vacation home growth rates: Evidence from Michigan
www.sciencedirect.com [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

Tailspotting: Identifying and profiting from CEO vacation tripsTailspotting: Identifying and profiting from CEO vacation trips
www.sciencedirect.com [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

The value of proximity to a vacation home rental in a resort communityThe value of proximity to a vacation home rental in a resort community
journals.sagepub.com [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

Effects of vacation properties on local education budgetsEffects of vacation properties on local education budgets
www.tandfonline.com [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

“As Members of the Social Whole”: A History of Social Reform as a Focus of Home Economics, 1895–1940“As Members of the Social Whole”: A History of Social Reform as a Focus of Home Economics, 1895–1940
onlinelibrary.wiley.com [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

Vacation homes and regional economic developmentVacation homes and regional economic development
www.tandfonline.com [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …

Beggar thy neighbor? Property taxation of vacation homesBeggar thy neighbor? Property taxation of vacation homes
www.jstor.org [PDF]
Differences in property tax rates among communities within a regional economy are a source of inefficiency and inequity. Less developed rural areas where natural amenities exist have often attempted to use the tourist industry as a means of importing economic …



Q&A About Vacation Home


What kind of property taxes do owners pay for their properties classified as "vacation homes"?

Property taxes for properties classified as "vacation homes" tend to be lower than those paid by owners who live in their properties full-time.

Why would an owner rent out their vacation home when they are not using it?

Because a vacation home is only used at certain times, many owners will rent out their vacation homes when they are not using them.

What is a vacation home?

A vacation home is a dwelling other than the owner's primary residence that is used for recreational purposes, like vacations.

How does the mortgage on a vacation home differ from one on an individual's primary residence?

The interest rate on mortgages of vacation homes tend to be higher because of the risk of default in case there are reversals of fortune.