Tax question: Can y...
 

Tax question: Can you write off the interest on a mortgage for a 2nd home in the USVI?  

 

Kenningtons
(@Kenningtons)
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March 14, 2013 7:18 pm  

All:

Wife & I have our primary residence in Oregon but bought a home on STT last year. STT home is currently rented out long-term. Can we write off the interest on the second (STT) mortgage?

Thanks,

Paul.

Location: La Grande, Oregon & St. Thomas, USVI.


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mtdoramike
(@mtdoramike)
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March 14, 2013 7:26 pm  

Nope, but to verify, check with H&R Block.

I have heard yes you can and no you can't. I think it depends on whether your total income for the year totals like $450.000.00 for the year. But anyway, this should be a question for your accountant, who should be the one to represent you if you get audited because of bad advice received here:)


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gonetropo
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March 14, 2013 8:01 pm  

Yes, you can write off the interest on the mortgage and any taxes, repairs, maintenance, HOA fees, and don't forget depreciation.
You also can deduct the utilities if they are included in the rent and any management fees and advertising associated with renting the property..

You have to file Schedule SE, Supplemental Income and Loss and also Form 4562, Depreciate and Amortization.

Of course, you have to claim the income on the property also!


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Dante
(@Dante)
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March 14, 2013 8:13 pm  

I second that Yes. Gonetropo is correct.


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Kenningtons
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March 15, 2013 1:36 am  

Thanks guys!

Location: La Grande, Oregon & St. Thomas, USVI.


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Exit Zero
(@exit-zero)
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March 15, 2013 3:14 am  

Using it for rental income allows you to take off expenses - but you have to watch out about using it personally for more than 14 days a year for vacation.


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gonetropo
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March 15, 2013 9:00 am  

The other benefit of renting the house is that if you have not lived in it for a certain amount of time, per IRS regs, and you now decide to sell the property, likely at a loss(unless you are very fortunate), you may be able to deduct the capital loss. This is based on your original cost basis - depreciation figured against your selling cost basis. This is something that you cannot do with a primary residence and a real boon in these times.


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Kenningtons
(@Kenningtons)
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March 21, 2013 3:42 am  

Thanks for the help. Who offers financing on USVI properties? We'd like to refi down to a lower rate, but Citi doesn't cover the USVI. Any other options?

Thanks again!

Location: La Grande, Oregon & St. Thomas, USVI.


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gonetropo
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March 21, 2013 9:25 am  

No US Bank will finance in tje USVI just like no insurance companies will insure here, with a few exceptions.

There are a few ways that I know to finance in the USVI.
USVI Bank (Banco Popular, First Bank, Bank of St. Croix)
USVI Mortgage Company
Refinace Stateside home and use the proceeds for the USVI home

Check out this link for some finance options. http://www.calabashrealtors.com/calabash-USVI-info-affiliates.htm

I happened to come across it some time ago so and not sure it is kept up to date.


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Isle Tell Ya
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March 21, 2013 10:13 am  

No US Bank will finance in tje USVI just like no insurance companies will insure here, with a few exceptions.

There are a few ways that I know to finance in the USVI.
USVI Bank (Banco Popular, First Bank, Bank of St. Croix)
USVI Mortgage Company
Refinace Stateside home and use the proceeds for the USVI home

Check out this link for some finance options. http://www.calabashrealtors.com/calabash-USVI-info-affiliates.htm

I happened to come across it some time ago so and not sure it is kept up to date.

Both Bank of America and Merrill Lynch are stateside providers providing financing in the VI.


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Alana33
(@Alana33)
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Joined: 8 years ago
Posts: 12211
March 21, 2013 10:43 am  

You can check with First Liberty for refi and I have my mortgage with Merrill Lynch.
Locally you can also try Scotia Bank.


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watruw8ing4
(@watruw8ing4)
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Joined: 13 years ago
Posts: 850
March 21, 2013 1:27 pm  

No US Bank will finance in tje USVI just like no insurance companies will insure here, with a few exceptions.

There are a few ways that I know to finance in the USVI.
USVI Bank (Banco Popular, First Bank, Bank of St. Croix)
USVI Mortgage Company
Refinace Stateside home and use the proceeds for the USVI home

Check out this link for some finance options. http://www.calabashrealtors.com/calabash-USVI-info-affiliates.htm

I happened to come across it some time ago so and not sure it is kept up to date.

Both Bank of America and Merrill Lynch are stateside providers providing financing in the VI.

Our mortgage here - on our second home - is through Flagstar Bank, headquartered in Michigan. But we do not rent out. Not sure what their lending rules are for rental property.


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