Tax issue? Shore is.
The downturn has diminished its value, and we thought of renting it until the market picks up again in our area. The place has great potential.
We also have thought of getting a mortgage to let us buy a place farther north. How will this rental affect our 2014 tax return? Our expenses are about $15,000, and we can easily get $16,000 in rentals. The property is worth about $250,000.
What about future capital gains when we sell? My husband is 70, and he will continue to work part time for the foreseeable future.
The gain when you sell it will be the excess of the sales price over the basis. The basis for sale is the value when inherited minus the depreciation taken.
However, before you go rental, think of all the duties you'll have as the property's landlord. It's not a passive investment.
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