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- Aug 12, 2020
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My wife and I are currently renting our primary residence. The biggest reasons are the high cost of real estate in our market and the corresponding down payment needs for the home we would want to buy. We don't want to be house poor while trying to operate the business we own together. Since we do own our business we have a lot of flexibility in our schedule as well as the ability to work remotely. We are considering purchasing a home in the USVI as our ultimate retirement home but we probably would not relocate permanently for several years. Between now and then, we would probably spend 4-6 month each year living in this new home. We would like to rent out the home in USVI as a vacation rental during the times we are back on the mainland. I would like to know the tax implications of making this move. Can we claim this new home as our primary residence for tax purposes since we don't technically own another home? Would we be able to get any tax advantages for having our residence in the mainland that we are renting? In making our purchasing decision, we need to consider all cost factors so any input would be greatly appreciated. Thanks in advance.