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If you're going to purchase a place as a summer vacation house, yeah you better be prepared for the tax consequences. We looked into it a few years ago and ran. Nice to visit, but if you can't a resident, then it's not worth the added cost and headache for most. Filling out tax forms for one state is enough to make your head spin, but to do it for 2 where one charges you income tax on your income from elsewhere? No thanks. I'd rather watch the latest reality show where they eat bugs and other gross things and I've NEVER watched one of those shows! But doing taxes make a person loopy for 3 or 4 days.
Why would you have to pay income taxes on a vacation home (non-rental)?
You don't pay income taxes on the home. You pay income taxes on ALL of your income in Maine including income from other states.
Vacation home is for vacationing. If it were my vacation home, I sure as heck wouldn't be working in that state while I'm on vacation. That said, I can't afford a vacation home.....
Vacation home is for vacationing. If it were my vacation home, I sure as heck wouldn't be working in that state while I'm on vacation. That said, I can't afford a vacation home.....
The scenario I had in mind is someone who is retired having a vacation home in ME. I know a couple thinking of doing that, and I told them to better look into it thoroughly first. I remember reading about ME taxes on pension and any other income they might have from out of state, even if they live there only 6 months of the year.
It's a beautiful state, that's for sure. Too bad they make it so difficult to live there.
The scenario I had in mind is someone who is retired having a vacation home in ME. I know a couple thinking of doing that, and I told them to better look into it thoroughly first. I remember reading about ME taxes on pension and any other income they might have from out of state, even if they live there only 6 months of the year.
It's a beautiful state, that's for sure. Too bad they make it so difficult to live there.
That would be bad. I didn't think of retirement income.
it's true - I have a home in ME, just outside of Bar Harbor - it's a cabin, non insulated, purely a summer home up on stilts, no foundation, etc. Maine taxes ALL of my income. I am retired and live on a pension and SS. It's a hefty price to keep the property that has been in the family since 1938.
I don't work in ME. I have never worked in ME. They tax my income and my spouse's income because we own this cabin.
it's true - I have a home in ME, just outside of Bar Harbor - it's a cabin, non insulated, purely a summer home up on stilts, no foundation, etc. Maine taxes ALL of my income. I am retired and live on a pension and SS. It's a hefty price to keep the property that has been in the family since 1938.
I don't work in ME. I have never worked in ME. They tax my income and my spouse's income because we own this cabin.
We must all be talking about different things.
If your permanent residence is in NH (or any other non-income tax state) and you have a second home in maine (with no-rental income) and do not work in Maine - then you don not need to pay Maine income tax.
Why would you be filing taxes in a state where you don't live and do not generate income?
Maybe I'm wrong, but could you site the tax code where that applies?
If your permanent residence is in NH (or any other non-income tax state) and you have a second home in maine (with no-rental income) and do not work in Maine - then you don not need to pay Maine income tax.
Why would you be filing taxes in a state where you don't live and do not generate income?
Maybe I'm wrong, but could you site the tax code where that applies?
If your permanent residence is in an income tax state, ME would still be taxing your income; perhaps you'd pay income tax to two states, as part-time resident of each. Idon't know how you can avoid one state or the other, even if you declared yourself a full time resident of your state and didn't declare any time spent in ME. Interesting question: What if you lived in, say, VA and didn't use your vacation cabin at all one year. Would you still have to pay income tax to ME?
Unless someone has a specific code otherwise, to my knowledge you are not "income" taxed in a state where you have a second home, unless that home earns rental income or you have a job in that state or you identify it as a primary residence.
You pay income tax in the state of your primary residence or in any other state where you work or earn income (whether you have a home there or not).
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