Because of current tax laws, if your home has lost value since you bought it, you can not deduct the loss when you sell it. To hedge this, some people consider renting the house for a year so the loss can be applied later.
Not so. IRS rules say that the value of the home at conversion (from owner occupied to a rental), less depreciation during the time it is rented, would be the property’s cost basis for determining a loss. Only further decline while it is a rental can be deducted.
Not so. IRS rules say that the value of the home at conversion (from owner occupied to a rental), less depreciation during the time it is rented, would be the property’s cost basis for determining a loss. Only further decline while it is a rental can be deducted.
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