Results 1 to 4 of 4

Hybrid View

  1. #1
    Join Date
    Feb 2013
    Posts
    9

    Default Tax Implications of Renting My Primary Residence

    Our family has grown too large for our house. We are considering renting it out while we rent a larger house.

    What will be our tax implications if we do this? Is it the case that we won't be able to write off the mortgage interest anymore?


    Thanks for any help..

  2. #2
    Join Date
    Sep 2012
    Posts
    1,991

    Default Re: Tax Implications of Renting My Primary Residence

    You need to discuss this with a local accountant or real estate lawyer who deals in rental taxes, many localities have different property tax rates for residence, rental and commercial properties, you will also need to review your homeowner's insurance policy to see if it covers rentals, it probably does not and you will need different insurance and you will need to review your mortgage, certain subsidized loans require you to live there for a period of time or pay a penalty.


    I am not saying you won't be able to do what you want to do, just that you really need a local professional so you get into this looking up and don't get hit by a drop bear.

  3. #3
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Tax Implications of Renting My Primary Residence

    Consent to lease from the mortgage holder is typically approved. The insurance your agent can work out.
    You can deduct the legitimate and customary expenses. This includes insurance, taxes, and the mortgage interest. You also MUST take the depreciation deduction.

    The one downside in the conversion is that if eventually you sell, you will not be able to use the current personal residence capital gains shelter. You can however, roll it over into a like kind investment and defer the gain until later.

  4. #4
    Join Date
    Feb 2013
    Posts
    9

    Default Re: Tax Implications of Renting My Primary Residence

    Thanks all!

    1. Sponsored Links
       

Similar Threads

  1. Modification of Custody: What is the Benefit of Having Primary Residence
    By Rian in forum Child Custody, Support and Visitation
    Replies: 1
    Last Post: 01-02-2013, 04:57 PM
  2. Custody and Visitation Issues: Custody and Primary Residence
    By SicSemperTyrannis in forum Child Custody, Support and Visitation
    Replies: 6
    Last Post: 07-28-2012, 09:13 AM
  3. Renting Primary Residence
    By RomanB in forum Tax Law
    Replies: 3
    Last Post: 12-19-2009, 05:00 AM
  4. Divorce: When My STBX Leaves the Primary Residence
    By sf1966 in forum Divorce, Annulment and Separation
    Replies: 2
    Last Post: 01-27-2009, 09:27 PM
  5. Chapter 13: Can You Keep Your Primary Residence After Bankruptcy
    By fila12 in forum Bankruptcy Law
    Replies: 4
    Last Post: 04-03-2007, 08:58 AM
 
 
Sponsored Links

Legal Help, Information and Resources