Why Invest in a Tower Plaza Condo?

Tax Advantages

The tax effects of purchasing a Tower Plaza Condominium can vary considerably, depending upon the actual use of the property:

• The property may be purchased for the taxpayer’s own use as an owner-occupied residence.
• The property may be purchased as a vacation home or second residence for the owner or their family. The second home may be for personal use only, or it may be used for part of the year as a rental property subject to these conditions:
  1. Personal use is limited to 14 days per year or 10% of the total number of days the home is rented at fair-market rental rates. 
  2. If the second home is for both personal and rental use (over 14 days or 10%), the taxpayer must divide all expenses on the basis of the proportion of owner use days to rental days against the total combined days uses.
  3. The property may be purchased as a rental property, to be rented in an arms-length transaction at a fair-market rental rate. (It is normally felt that rental to a family member qualifies if the rental is based upon an arms-length transaction.)

Summary: Tax Deductibility of Costs

Note: This information is intended as a simple guide to the potential tax advantages from ownership of a Tower Plaza Condominium. The information is subject to periodic review and revision, and is not guaranteed to be accurate at this or any time. To learn more about how these tax advantages may apply to you, please consult with your accountant or attorney.