The IRS allows taxpapers to claim deductions for mortgage interest and property taxes for two primary personal residences. If you have a main home, a desert home and a yacht you can get the benefit of the three interest deductions by borrowing extra from your home equity and paying cash for the boat. That way, you can claim all the interest without exceeding the rule on two primary residences. If you're buying a home with friends or relatives as partners, you can get a loan for that too. The lender will pool both incomes to qualify the borrowers for the price of the second home.
The advantage of using the property as an investment rental is considerable at tax time because you can deduct the full costs of utilities, maintenance and insurance and depreciation as well as the mortgage interest and taxes.
Of course each individual's tax implications are different, so check your details with a lender and tax advisor before investing.
If you've been dreaming about a second home in the desert, turn the dream into a reality now - with tax advantages. What are you waiting for?