Happy 4th of July! Here’s some advice that I have that’s probably applicable for a lot of you out there. At some point, most of us have either rented a property, or rented out a property. If you are trying to rent your home now, here’s some advice that could definitely help you.
If you can’t sell your home at the price you want because of your location, or a bad market, you may have to consider renting out your present home until the economic situation turns around.
There are pro’s and con’s on the subject of renting. On the plus side, renting our home turn it into a business property. This entitles you to deduct operating expenses, maintenance, repairs and to depreciate the property. As a result, a $100,000 house depreciated over 18 years, yields a very sizeable annual deduction for depreciation. Also, if you rent the house furnished, the furniture, too, is depreciable.
The main disadvantage is that most homeowners NEED the cash from the sale of their old home to finance the purchase of the new one. Your best bet is to sell and make a clean break with no problems left behind. Your Realtor should be able to suggest a creative idea or financing to solve your selling problem.
Thanks for the warning, unfortunately sometimes they do not pay attention to these details!