Home Selling in Talkeetna>Question Details

Mia Mangione, Home Buyer in Talkeetna, AK

We bought a new house two years ago. We have been unable to sell our old house yet. It is paid off so we don't have to worry about mortgage

Asked by Mia Mangione, Talkeetna, AK Mon Mar 11, 2013

payments We only live 1 mile away so vandalism is not an issue. Someone is interested in renting it. We are not sure about losing the mortgage exemption vs the rental taxes, etc when we do sell the house

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Ok, why is life so complicated right?
Ok this first house of course is not anymore your primary residence you can really primary only live in
one especially if they are only 1 mile apart... so there goes that....

If you can rent it for a good monthly rent and in your area renting is up and going strong you certainly
can rent, but remember you will have to pay the real estate taxes without the homestead deduction,
and pay income tax on the income from the rent, and you are still responsible for maintaining the home
heating etc. So you may want to sit down with a local Realtor and put all the numbers in front of you.
It may not be such a bad idea to put it on the market for sale at this time, but I do not know your home, its size, age, updates etc. which all will influence how much you may net on this home....

The age of the home is also important in this decision. for the tax issues do talk beforehand to a good
tax accountant.

Good Luck to you
Good Luck to you

Sincerely yours,
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0 votes Thank Flag Link Wed Mar 13, 2013
Hi Mia, You should indeed check with your accountant or tax preparer to help you determine your tax situation. Keeping your former home for a rental might be a good strategy for you. However you will lose the exemption for capital gains if a home was not your residence for two of the last five years when you do sell it. Having your home vacant means a big investment that is just costing you money for taxes and insurance, including in your case the expense of flood insurance, plus the cost of deterioration/maintenance. No matter your financial situation, it would be to your benefit to either get it rented or get it ready to put on the market.
0 votes Thank Flag Link Mon Mar 11, 2013
Mia, I agree with Suzanne from Arlington, New Jersey.
However as the market seems to be picking up in some areas of the state you may want list your property again for sale and having a renter in the property will hinder the licensees that have clients wishing to Brown the property by having to give 24notice hour notice prior to viewing.
You may have already lost any tax advantages by moving into the new house and therefore creating new primary residence in that location.
0 votes Thank Flag Link Mon Mar 11, 2013
You should contact a CPA or tax preparer before you decide to rent the house and ask them. Taxes are not something realtors specialize in, that is the specialty of CPAs.
0 votes Thank Flag Link Mon Mar 11, 2013
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