Your vacation home may open the door to charitable giving tax breaks. But following the rules can be challenging. A donation of short-term use of the property generally isn’t deductible. It could even create negative tax consequences for you, depending on how many days you rent out the home and how much you use it personally. You may qualify for a substantial deduction by donating the home itself, subject to valuation and reporting requirements. A less extreme option is to rent out the property and donate the proceeds, subject to the rules that apply to cash donations. Careful recordkeeping is essential. Contact us to discuss an effective charitable giving strategy for your situation.
