looking to officially rent out my house.. sugestions?

[black]

I'm looking to officialy rent my house out as the commitment to watch it and maintain it while i rent out rooms to my room mates is geting to be to too much of a hassle.

Has anyone rented their house?
Any suggestions?
What is the tax implications, wha tcan I claim as deductions,? deduct improvement? repairs?
who do I contact to officially put it onthe market?



Any suggestions would be appreciated

The house is in RI and I am now a resident of mass. are they any implication/issues i can watch out for? loopholes I can take advantage of?

[rg500]

I live in edgewood. Tell me more about the house....

[Manny]

I live in edgewood. Tell me more about the house....

Its not a motard. Can you live in it if its not a motard?

[rg500]

as long as there is room for a motard or two..

[Manny]

as long as there is room for a motard or two..

hundred

[DuncanMoto]

Once you rent it for 3 years and 1 day, it becomes and investment property as far as capital gains taxes are concerned.
It's prorated before that depending on how ballsy your accountant is.
You are forced to take a depreciation deduction over 27 1/2 years. (this is not an option)
There are different tax implications and benefits depending on what your situation is and your profession is.
You need to talk to your CPA about this. If you don't have a CPA you will need one.

[richw]

I am a coward

I think almost anyone will trash it and you lose the value on the property as they are paying rent. Around here rents would not cover a combination of mortgage insurance and taxes.

Back in the day BIG companies used to lease rent houses for visiting executives like for 6 month or 1 year assignments.

YOu might inquire about at some BIG companies

If you yourself will not return within 3 years just get out. Only if it is irreplaceable like a lake house would I put up with the upcoming shit storm,

[black]

I live in edgewood. Tell me more about the house....

house is a simple 3 br 1.5 bath cape cod rear dormer, front and back yard garage( fit 3 motards no problem), basement( finished) family neighborhood
updated kitchen, windows, recently painted,

on preston dr in cranston

[black]

Once you rent it for 3 years and 1 day, it becomes and investment property as far as capital gains taxes are concerned.
It's prorated before that depending on how ballsy your accountant is.
You are forced to take a depreciation deduction over 27 1/2 years. (this is not an option)
There are different tax implications and benefits depending on what your situation is and your profession is.
You need to talk to your CPA about this. If you don't have a CPA you will need one.

I heard about the 3 year scenario. i thought i twas 2 for some reason, will get to a CPA or other similiarly knowledgeable person.

I've never gone to a cpa before.

Any references? are they usualy a fee based, cna I get a free intro session with one syaing how they wil help me?

[black]

I am a coward

I think almost anyone will trash it and you lose the value on the property as they are paying rent. Around here rents would not cover a combination of mortgage insurance and taxes.


If you yourself will not return within 3 years just get out. Only if it is irreplaceable like a lake house would I put up with the upcoming shit storm,

I'll return to it one way or another i'm sure.

[Stoneman]

Two words: Landlord Connection, or some other similar org. There's a bunch of 'em out there. They cost a small fee to join, but the resources are awesome. I'd highly suggest looking into joining something like that...

[DuncanMoto]

I heard about the 3 year scenario. i thought i twas 2 for some reason, will get to a CPA or other similiarly knowledgeable person.

I've never gone to a cpa before.

Any references? are they usualy a fee based, cna I get a free intro session with one syaing how they wil help me?

FYI - I am a Realtor and I've seen this many times.
My disclosure: I am not an accountant or an attorney. I cannot pratice law and I am not giving tax advice. Seek appropriate professional help on this subject.

The IRS rule says that you must owner occupy the home as your primary residence for 2 out of the last 5 years to avoid investment capital gains. A CPA is important because the tax law gets interpreted differently on this. I have heard one accountant say "well if you rent for 1 year then sell you have to pay 20% of the capital gain tax, 2 years rented 40%, etc." another accountant will tell you that nothing is due as long as you sell it by the end of the 3rd year of renting it. The real trap is if you bought it cheap and are set up to take a gain you will end up paying capital gains on the full gain if you don't sell it before 3 years after you vacate. While renting it you are taking a 3.64% depreciation on the property. (effectively adding 3.64% to your taxable gains.)

I certainly have someone you can talk to about Real Estate planning with no obligation. send me a pm. I don't want to put his info up without his permission.

[black]

PM sent.

I've been in th house officially for the past 6 years so I have that covered.