Renting a home can be easier than owning a home, but it requires its own special set of circumstances. Whether you’re the renter or the landlord, look at the articles, columns, blog posts, radio shows and videos for more information about renting a home.
Subleasing Rental Property May Be Illegal
A renter has been subletting an apartment and paying the original tenant the monthly rent. Now it turns out that the sublease is illegal and the original tenant may not have not been paying on the lease. The subleaser may be obligated to pay back rent to the apartment owner. In general, if you're going to sublease an apartment, you have to make sure the owner has knowledge of your existence, has consented to the sublease in writing and that the parties understand who will be paying what and when.
Mixing Rental And Personal Income
Is there a problem when co-mingling personal and investment finances? Unless you have a corporation or business structure set up, having one bank account for personal expenses and a business, like a rental building, is OK. However, you want to make sure you keep very clear records in case you're audited.
1031 Tax-Free Exchange May Help Delay Capital Gains
When you rent out rooms in your home, you're not only living in your primary residence but you're also conducting business. When you're renting out rooms and later decide to sell what taxes do you have to pay? You may owe taxes on the depreciation you claimed and capital gains tax on the investment portion of the property.
Considering Renting Out Home
Being a landlord means being able to keep the house rented and maintained. It's more difficult to be a landlord if you are far away from the property. If you want to do this, consider offering the property at a slight discount to the normal market rent. This should produce a greater number of prospective tenants from which you will hopefully be able to find a great tenant who will be able to take care of the property for you.
Taxes On Sale Of Rental Property and Primary Residence
A couple bought a home on a 2-acre lot. They lived in it while they built a second home, and then moved into the second home after it was completed. They now rent out the original home to another couple. If they sell the property and both homes, how will the transaction be treated at tax time?
Use 1031 Exchange To Avoid Capital Gains Tax
Just calling a home your sold home your primary residence doesn't mean you'll avoid capital gains taxes. Using a 1031 exchange when selling a home and buying a new one can help defer capital gains taxes. With a 1031 exchange, you can swap investment property for another income-producing property that costs at least the same amount.
Selling Rental And Primary Residences
A reader comments on Ilyce's initial article about selling primary and rental properties.
Renters’ Rights: The Basics
Renters' Rights: The Basics by Janet Portman and Marcia Stewart. Is it next to impossible to get the rent out of your roommate each month? Or is your ...
Time Limit For 1031 Exchange
A 1031 exchange allows property owners to sell one investment property to purchase another and defer taxes, provided that the new property costs at least as much as the original property. But you typically have 45 days to designate the property to be exchanged and there are other rules for 1031 exchanges. Consult a real estate attorney who frequently does 1031 exchanges before buying or selling.