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Can We Deduct Mortgage Interest on a Second Home?

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Can We Deduct Mortgage Interest on a Second Home?

Mortgage interest isn't deductible itself but instead contributes to passive activity losses. These are deductible up to $100,000 per AGI taxpayer and phase out at $150,000. If you want to maximize the tax efficiency of real estate investment holdings, equities in a business entity are more efficient because the US tax code is written to incentivize entrepreneurship.

Having income directly related to a business, such as an LLC that holds your rental property, is the most advantageous way to use current tax codes to your benefit. Consult with a CPA to set up your small business in the most tax favorable way possible. 

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Can We Deduct Mortgage Interest on a Second Home?
Can We Deduct Mortgage Interest on a Second Home?

Mortgage interest isn't deductible itself but instead contributes to passive activity losses. If you want to maximize the tax efficiency of real estate investment holdings, equities in a business entity are more efficient.

Should My Asset Allocation Change As I Get Older?
Should My Asset Allocation Change As I Get Older?

Regardless of your age, asset allocation should be based on when the funds will be needed. Funds that will need to be accessed within two years should reside in assets such as cash or short-term debt securities such as treasury bills or notes.

Sequence of Returns Risk
Sequence of Returns Risk

How market volatility and withdrawal timing impact retirement income. This video can help you be seen as an authority on retirement income strategies and educate clients on sequence of returns risk.


Why We Fight About Money
Why We Fight About Money

If you had more money, would it solve all your fights about money? Maybe some of them, if you and your significant other are at odds only because of a scarcity of resources in your household.

5 Steps to Create an Estate Plan
5 Steps to Create an Estate Plan

Creating an estate plan is a task that routinely gets pushed to the bottom of the pile. Some assume that estate plans are only for the wealthy. Others may simply want to avoid some of the tough topics estate planning entails.

5 HSA Benefits That May Surprise You
5 HSA Benefits That May Surprise You

You may be familiar with Health Savings Accounts (HSAs). These accounts have been around now for a while. They work with high deductible health insurance and are known for their triple tax benefits. Contributions can be deducted.

How You Can Reduce Your RMD
How You Can Reduce Your RMD

When you contribute to a traditional IRA you make a deal with Uncle Sam. You can get a tax deduction and tax deferral on any earnings in your IRA. However, eventually the government is going to want its share and will require funds to come out of these accounts.

Crypto-Backed Real Estate: How a New Trend Impacts an Old Business
Crypto-Backed Real Estate: How a New Trend Impacts an Old Business

As financial coaches and fiduciary financial planners, some of the most challenging questions we receive at SeaCure Advisors are about cryptocurrencies.