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Article: Moving? Can't sell? Why not rent?(Streetwise)(the consequences of renting out a former residence)(part 3)
- Article from:
- Strategic Finance
- Article date:
- September 1, 1999
- Author:
CopyrightCOPYRIGHT 1999 Institute of Management Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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This is the third in a series on the consequences of renting out a house that previously was a principal residence. The first two articles covered the tax implications of temporarily renting out your old home in order to mitigate the expense of owning two homes. Here we discuss the consequences of actually converting your former residence to rental property.
As discussed in the first two parts of this series, deductions of the expenses associated with a house, including depreciation, are allowed whether it is rented temporarily before its sale or converted to income producing or business property. However, if the property is converted to income producing or ...