Is It Totally Worthed To Give Your Condo For Rental For 1 Or 2 Years?
Feb.12, 2010 in
chalet
I mean, how much you have to pay tax for it and how much of it you can deduct for tax (like condo fee, property tax,…)
And what happens when you sell the condo after? You have to pay extra tax again since you made money out of it?
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February 12th, 2010 at 10:27 am
No one can answer that for you. You have to do a complete analysis to answer the question.
What is the cost of your mortgage payments, taxes, and maintenance? How is the rental market in your area? How much can you realistically get for rent? Will the rent cover your costs and still give you a reasonable profit? How long can you hold out if your renter leaves and you have difficulty finding another one? Do you want the hassle of being a landlord and having to do the maintenance when things go wrong?
If you can realistically make enough money to cover your costs, including the time that it will be empty between renters, then it may be a good idea. If you can’t, then it’s not a good idea.
Association fees are not tax deductible, so don’t count on that as a break. Yes, you will have taxable income but you might also be able to deduct depreciation, so that could offset some or all of the extra tax. You will also have capital gains tax when you sell if you make a profit on the property and you don’t meet the IRS requirement for having personally lived in the home for the required time.
February 12th, 2010 at 11:13 am
i do not think the montly maintance fees are tax deductible.
i would imagine how much you can deduct from your taxes
for related expense could vary from state to state.
you would have to pay a capital gains tax if you sold the
condo at a profit, but morgan stanly just came out with
a report saing houses will drop in value for another
three years.