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Originally Posted by hema54
Thanks for the help. So the rental expenses can be used for tax purposes like a business. Those are the things I need to know. I didn't want to use a management company I live a couple hours away so we can do alot of stuff ouselves to save on that cost.
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That will be a big help to you if you can do things yourself. You live close enough so that if tenants have a problem you can attend to it. I am renting my house I am using a management company to oversee it. They have only been able to rent it in prime time i.e. Feb & March. My home is a patio villa and the rent I receive for those 2 months pays my taxes and insurance which is all I am looking for. For taxes purposes I claim it as a rental. If you do this however the IRS says you can only use your house no more than 2 weeks out of the year to be able to claim all expenses etc otherwise you have to prorate expenses to account for the time you were there over the allowed 2 week period. It is my understanding that if you claim it as a rental you have to depreciate it also. You may want to check with your accountant to see what your actual liabilities will be. Hope this helps.
