Buying Small Cabin

Expert, localized Los Angeles answers provided by Heather Roy

Buying Small Cabin
	Hello Edith, Is it a good investment to buy property (3-10 acres) with a small cabin or mobile home now, 8 years prior to retirement with the idea of fixing it up so when we retire it would be ready for us to live in. What kind of tax deductions would we get? Thank You Jo

	I'm not qualified to give personal finance advice, and in any event, I don't know your whole situation. Would this be near your present home? Would you be using it for vacations? Renting it out? All that might make a difference, from a financial point of view. I can tell you that you can take an income-tax deduction for all mortgage interest you pay on both a first and a second home, up to a million dollars' worth of borrowing or even more. You can also deduct all property taxes you pay.
	Edith Originally published on August 13, 2007

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