Should I buy a vacation home?
Buyers Answers

Today a vacation home can be purchased for investment purposes, as well as enjoyment. And yes, there are tax benefits.

Some people buy a vacation home with the idea of turning it into a permanent retirement home down the road, which puts them ahead on their payments. Another benefit is the interest and property taxes are tax deductible, which helps offset the cost of paying for a second home. A vacation home also can be depreciated if you live in it fewer than 14 days a year, or 10 percent of the rented days - whichever is greater.