TAX IMPLICATIONS

Current IRS regulations allow you to occupy your investment property for 14 consecutive nights per year
( or 10% of the cumulative rented nights, whichever is greater) and still reap all of the tax benefits of maintaining your investment.

 Not only do you deduct mortgage interest and property taxes, but add depreciation, maintenance and all related expenses including your travel to inspect your investment*.  

SECOND HOME-IRS TREATMENT

Generally speaking, even if you don't maintain your Florida property as investment property (you maintain it as a "vacation home," for example) you can still deduct the interest on the mortgage and the property taxes as well*.

IRS CODE SECTION 1031

Recent IRS rulings have liberalized this code which allows tax deferred exchanges on "like kind" investment property (i.e. selling your Northern investment property at a gain and deferring the gain by acquiring Florida investment property within certain time constraints.)  The recent liberalization also allows "reverse" exchanges (i.e. acquiring the new Florida property prior to selling the Northern property.)*

*Obviously some limitations apply and laws are subject to change. This information is not intended as tax advice. Please consult your professional tax advisor for complete details.