Rent out primary residence after 6 months (4%, income tax, agent, investment)

[kira7e]

Hi, I purchased a townhouse in April 2007, I am now moving out of state. I have only owned the house for about 9 months and the price of it has gone down by about $30,000.

I plan to live out of state for 2 years and rent during that time. What are the tax implications of renting out my townhouse? The rent most likely will not quite cover the mortgage, but it will be close enough for me to be able to afford the difference. What are the tax implications if I sell it at a loss?

Any info/advice would be greatly appreciated!

[Brandon Hoffman]

You'll want to ask a local agent or a tax advisor that question because it probably varies by state.
In SC, it goes from 4% to 6%.

[DMenscha]

Tax Topics - Topic 409 Capital Gains and Losses

it's all right here.

[shellytc]

Kira, I would recommend you talk to an accountant or tax preparer for your individual situation. It is very important that you get the correct information. Basically though, you would be able to take a loss on your taxes for rental property. If your mortgage amount is 1200 per month, and you can only rent for 1000 a month, you are taking a negative of 200 a month.. you should be able to take that loss on your income taxes.

disclaimer: please verify with your accountant, i am not one nor do a play one on tv.... Your Mileage May Vary!!

Shelly

[westchester]

Their are no tax problems if you do not sell.............Hold out for 2 years you can see what happens.................Good Luck............

[Brandon Hoffman]

Do other states tax properties at different rates depending on primary residence vs. investment or is it just SC? We are 4% primary/ 6% investment or rental.

[DMenscha]

CA there is no difference, we're just like a spurned spouse, we want half