A Second Home in Your Future?

Sales of second homes are surging, as baby boomers seek investment and vacation properties in record numbers. A study by the National Association of Realtors (NAR) ( www.realtor.org ) said 23% of all properties purchased in 2004 were for investment while another 13% were vacation homes. NAR reported a record 2.82 million second-home sales in 2004, up 16.3% from 2003.

The typical vacation home buyer was 55 years old and earned $71,000 in 2003. Investment property buyers had a median age of 47 and earned $85,700. The median price of a vacation home was $190,000 compared with $148,000 for investment properties.

The most frequent motivation for buying a second home was to diversify investments. Others sought rental income or a family retreat. But nearly one of five second homes will become a primary residence after its owners retire.

TOP 10
Towns for Second-Home Investments

Asheville, N.C.
Park City, Utah
Ashland, Ore.
Port Townsend, Wash.
Beaufort, S.C.
South Lake Tahoe, Calif.
Daytona Beach, Fla.
Sunriver, Ore.
Myrtle Beach, S.C.
Charlevoix, Mich.

Source: EscapeHomes.com.


6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.


How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.