RENTING OUT YOUR HOME

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 pros and cons on the subject of renting. On the plus side, renting your home turns it into a business property. This entitles you to deduct operating expenses, maintenance, and repairs, and to depreciate the property. As a result, a $100,000 house depreciated over 18 years yields a very sizable 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 creative ideas or financing to solve your selling problem.