Quote:
Originally Posted by Haywood
Quote:
Originally Posted by 2000cs
As a second home you may get some interest deduction if you’re not already over the limit, and you may get a property tax deduction...
As a rental, all expenses are deductible at least to the extent of rental income and of course you can depreciate the property (not land value). But there are limitations on how much you can use it and qualify as a rental.
In Florida (and some other states) the property taxes are higher if you are not a resident and don’t live in the property.
Renting can be a good way to help pay for a home, but most rentals don’t have super nice furniture and decor because of damage and theft. Plus limited space for owners private stuff. I assume you’ve rented some houses/condos for vacations and can reflect on that?
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Thanks. The house is in a very affluent gated community so I don't really have to worry about people trashing the place. I actually negotiated with the furniture and it's pretty nice less a few pieces I'd change. The taxes are only $4100. |
Is that the current owners' tax bill? If they have been in the house a long time and are Florida residents, annual increases have likely been capped due to Florida's homestead exemption. They could jump up once the house is sold.
If it were me, I would first decide whether I actually want to rent the property or not, then figure out how to take advantage of what tax deductions may be available. I wouldn't let income tax treatment dictate whether or not to rent it out to others.