Dave, Other/Just Looking in South Bay, FL

Do I need a license to rent out my home? How does renting it affect my taxes?

Asked by Dave, South Bay, FL Sat Oct 13, 2007

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6
No, you do not need a license to rent out your home as long as it is for normal tenant occupancy and normal single family residential use. As far as tax advantages, it depends upon whether you have a positive or negative cash flow...in other word whether you are making a profit on the renting of your property. I would encourage you to contact a professional financial planner or a Certified Public Accountant (CPA)
1 vote Thank Flag Link Sat Oct 13, 2007
The income is taxable but if you've made inprovments to the property, you can offset the gain. Please consult with a professional accountant.
0 votes Thank Flag Link Mon Oct 15, 2007
The rental income is taxable as income to you but you can write off depreciation, repairs, upkeep etc. I have three rental properties and they really help avoid or defer taxes. You should check with an accountant to see how much, if any the rental would help you. Finding renters had been easier the last couple years with more people holding off on purchasing a home. I have to notify the city where my rentals are located and get a yearly license, check with your city or county to find out what the process is. You shouldn't need a real estate license if you own the home.
0 votes Thank Flag Link Sat Oct 13, 2007
Dave:

No. It is the same as if you lived there.
0 votes Thank Flag Link Sat Oct 13, 2007
Thank you both. I guess I should have clarified about which tax. Do I have to notify the county that I will be renting out my home? Is there a different tax for income properties?
0 votes Thank Flag Link Sat Oct 13, 2007
Hi Dave,

Income from a rental property is considered income on your taxes, however some of the costs of maintaining an income property are deductible. As Adrian said, you'd have to consult with your CPA for specifics. If you sell an income property, you are not eligible for capital gain exception except in certain circumstances (has to do with timing you lived there and time it's been rented out,) again you'd have to discuss with your CPA.
0 votes Thank Flag Link Sat Oct 13, 2007
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