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Old 11-24-2021, 08:08 AM   #23
jeffk
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Quote:
Originally Posted by TiltonBB View Post
That is not always the case. If your New Hampshire waterfront property is valued significantly higher than your 'primary residence' then THAT is where you will be most impacted. When you couple that with the $10,000 cap on real estate tax deductions the tax impact can be significant. Property taxes paid on personal use property, second homes and vacation homes, while still deductible as itemized deductions, are subject to the $10,000 limitation.

Yes, everyone knew the rules when they bought (or inherited) but the tax law change in 2017 made a big difference. For example: If the combined real estate taxes from your two homes is $30,000, the 2017 law change took away a $20,000 deduction. If you are in a 30% tax bracket that change cost you $6,000.

Yes, it's a nice problem to have (until you look at how the government spends "your" money!) but it still impacts a lot of people.
When I say impacted, I mean whether you have decent schools, police, fire, roads, library, and dozens of other services that could be voted away by seasonal residents to save a buck. WE live here and it's not easy to pack up our lives and move. Seasonal people only have a house here. Yeah, sometimes towns overspend. But residents pay for that as well and resist it. Some of these costs are related to the flood of seasonal people and their "needs".
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