I own a house that I lived in for 5 years prior to getting married. What are the implications of renting it?

I would like to know about tax implications as well as capital gains issues. If I report the profits of the rental will this affect me negatively? What abour improvements?I own a house that I lived in for 5 years prior to getting married. What are the implications of renting it?
In the United States, every penny you put into your rental property is deductible from your rental income at tax time. I mean ALL OF IT, mortgage, insurance, utilities, improvements, professional services, etc. Capital gains only comes into play when you sell.I own a house that I lived in for 5 years prior to getting married. What are the implications of renting it?
Given the complexities of tax law and the ever consuming contradictions within the various laws relating to taxation in real estate it is always advisable to have a CPA handle such issues, you can however check these links to get some general information so that you can at least have some information in trying to understand the complex answer that your CPA most likely will give you


IRS publication on Home interest deduction: http://www.irs.gov/publications/p936/ar0鈥?/a> and or: http://www.irs.gov/faqs/faq3-6.html


IRS: Residential Real Estate Rental deductions: http://www.irs.gov/publications/p527/ind鈥?/a>


IRS: 3.6 Itemized Deductions/Standard Deductions: 6. Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses): http://www.irs.gov/faqs/faq3-6.html


If the information is not in the above links then you might want to consider contacting your local IRS office they are there to help.


IRS: Contacting your local IRS office: http://www.irs.gov/localcontacts/index.h鈥?/a>


Buena Suerte
you should not have to pay capital gains as long as you have lived in your house two years out of the last five. You will still be able to write of the interest that you pay on the house that you rent out. But the rent that is coming in is counted as income for you. Some lenders consider 75% to 90% of the rent to be income. If you do any improvements to the home keep the receipts because you can write it off for you taxes. You should get a rental agreement for the renter so that they are legally responsible for any damages that they may do to the property. You could give my husband a call or shot an email to him if you would like, He is a mortgage broker and we have a rental as well. So he knows alot about the investment side of it.


360-241-8970 Paul


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