Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Real Estate
  4. / Renting And Leasing Real Estate
  5. / Landlord Concerns With Renters
  6. / Landlord Concerns With Renters (General)

by NoWayJose on March 16th, 2009

NoWayJose

Question

Help answer this question below.

I own a home which is worth about 150000. I owe 50000. It was my primary residence until now. What are the tax ramifications if I rent it out rather than sell it?

  • Like
  • Report
Share:
Other

Answers. Showing one answer.

  • by Redhawk on May 15th, 2009

    Redhawk

    Well, you may be charged a local "Landlord/rental" TAX.

    However, you will also be allowed to WRITE OFF expenses associated with IMPROVEMENTS AND REPAIRS!

    So keep track of anything you buy, or do to the property to keep it in good shape, or improve it, because some of that you'll get back in your pocket as your Costs of operating a rental!

    If you are trying to rent it out, in good faith, yet are not successful in doing so for a period of time, you can also claim that as a business loss when you do your taxes.

    Make sure you are charging a reasonable amount by checking out this web site.

    http://www.rentometer.com/tenant

    Keep in mind different features your property may offer, such as you ALLOW pets WITHOUT demanding some insane qualifiers, like a five ounce dog, (FYI while there can always be an exception to the rule..most large dogs are calmer and more quiet than smaller dogs!) or asking for $100.00 extra for a cat....EACH MONTH. As a landlord myself...I had to wonder about that ad...what?.... will the landlord personally stop in and scoop the litter box daily for the extra $100 per month? What exactly do they think the cat is going to do? IF you choose to allow pets...do not charge a separate PET DEPOSIT...just make THE DEPOSIT enough to cover most likely problems, don't limit what you could go after by separating the deposit...damage is damage, human or animal. I've had much more damage from a human than any animal that has been allowed to live in my rental!

    Does your property have a pool? A special new fridge, or come with a washer and dryer? Who will pay the water bill? Is there a gardener included? What about a garage, deck, fruit trees and beautiful landscaping to enjoy. What fun, or useful places are within an easy drive to your property? A zoo, schools, water park, stores, eateries, movie houses. Is there a thriving mecca of employment opportunities available, public transportation, parks. All of these sorts of things make your property DESIRABLE; especially if coupled with you being a good, fair, and considerate Landlord.

    In 14 years, I've had two stinkers, and five total JEWELS of Tenants...the Jewels were all people who were not only good and dependable and honest folks but were so kind as to take special care of my little house and almost without fail ADDED to my property in ways to make it look, and feel even more homey than when they moved in.

    I do allow pets and I also try to keep in mind, that while it is my property, my house...it needs to be THEIR HOME...they are paying me and caring for it, and I want it to be their sanctuary after a hard day's work; just as it was for me, when I lived in it.

    Comments

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading I own a home which is worth about 150000. I owe 50000. It was my primary residence until now. What are the tax ramifications if I rent it out rather than sell it?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

Answerbag

a Demand Media company