Tax change may hit vacation homes | VailDaily.com
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Tax change may hit vacation homes

Allen Best

JACKSON HOLE, Wyo. A federal panel in early November released a lengthy report recommending federal tax reform – including a change in income tax deductions that could affect the market for vacation homes.Just how this recommended change will affect the resorts of the West, however, remains a point of discussion, reports the Jackson Hole News & Guide.Current federal law allows taxpayers to write off a portion of the interest they pay on home lands. The provision is limited to $1.1 million in debt. But the advisory panel recommends taxpayers get a tax credit equal to 15 percent of mortgage interest paid. There would be no deductions for second homes.Realtors and financiers involved in the resort market are ready to battle the proposal. Clayton Andrews, managing broker at the Sotheby’s affiliate, tells the newspaper he believes the tax reform that has been proposed will decrease the amount of money brought into the market by investment or speculative buyers. But, because Jackson Hole is the vacation home to some of the wealthiest citizens in the United States, the change would not affected it as much as it would other resort markets that cater to the less well-heeled.Idaho resort gets more planesHAILEY, Idaho – Air service into the Ketchum-Sun Valley market is expanding. The resort had daily flights from Seattle, Oakland, and Los Angeles, as well as shuttles from Salt Lake City.But a second daily flight from Seattle is possible, and six-days-per-week flights from Boise have just been announced. Discussions are continuing about a flight from Denver, which would make Sun Valley/Ketchum easier to get to from people east of the Rocky Mountains.While the Sun Valley Resort had to post revenue guarantees during the past two years to lure the flights from California, Horizon Air this year only asked for an aggressive publicity campaign. To that end, Sun Valley and the local chamber are distributing 100,000 postcards, while the resort is spending $50,000 on newspaper advertising.Ski company spokesman Jack Sibbach says eventually Sun Valley/Ketchum will have to undertake a more major program of minimum revenue guarantees, such as has been done in Jackson Hole, Vail, Steamboat Springs, Telluride and Crested Butte.Vail, Colorado


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