You Could Be Paying More Taxes on Your Rhode Island Vacation Home
Many of the world’s wealthy enjoy the luxury of having a vacation home, or perhaps several vacation homes. Some people have homes in a sunny paradise, while others choose mountain locations where they can get away for a great ski vacation. One popular spot in the U.S. for vacation homes is Rhode Island. However, for those who own vacation rentals in the state, the tax burden is going up.
According to the budget that was just passed in June, lawmakers have voted to expand the definition of hotel to also include private home rentals and bed and breakfasts in that category. The new tax increase is expected to add an additional $700,000 to the fiscal budget in 2016. Despite opposition from the Rhode Island Association of Realtors, the governor signed the budget proposal and the changes are now in affect. One of the arguments against the increase was that the tax would kick in right as the summer season begins. That could prove to be a problem for many vacationers who had not planned for the extra taxes in their vacation budget.
The president of the Rhode Island Association of Realtors, who had asked lawmakers to reject the proposal, claimed that many vacationers would instead choose different states for their vacation, thus costing the state more income. He also claimed that fewer people would be willing to purchase vacation homes in Rhode Island because of the extra tax. Time will tell if he is right, but regardless, if you have a vacation home in Rhode Island then you will now have to start paying more to rent it.
Tax Topics Business Owners Need to Know
Being the owner of a small business can be very rewarding, but very challenging at the same time. One of the biggest challenges small business owners face is dealing with taxes. There are countless items to keep track of and monitor with small business taxes, but these are some of the most important issues to…
Top Tax-Saving Moves Used By High Net Worth Individuals
One of the biggest complaints certain groups or individuals have against the wealthy is that they can take advantage of too many tax breaks and loopholes to lower their tax bill. So what are some of the top tax strategies that high net worth individuals use to keep their tax rates down, and could anyone…
Should University Donations Trigger Tax Breaks for the Wealthy?
Universities big and small receive donations from many different sources, including wealthy alumni. However, not all donations are created equal and because the wealthy donors get a huge tax break for their significant donations, some wonder if that is really fair. For example, Nike co-founder, Phil Knight, recently donated $400 million to Stanford, where he…
Money-Saving Tips for Freelancers
When you hear the term freelancer, you might think of someone working a small business out of his or her home and just doing things on the fly. However, freelancers come in all forms and many owners of small businesses or startups are also freelancers. Being a freelancer means you are self-employed and being self-employed…