Questions about turning a primary residence in to a rental

2 Replies

We are buying a new home and will be turning our primary residence in to a rental property. I have the following questions, thanks for any help in answering them!

1. We have taken the home office deduction each year, how will this affect turning it to a rental? Or, no affect at all?

2. We bought a new HVAC system that we still owe some money on (0% interest so decided payments were better). Can we start taking the payments as a deduction in any way once this officially is rented?

3. After we officially move to the new home, can all maintenance and any repair all be deducted?

4. Any other things I need to factor in to changing a primary residence to a rental?

@Therese V. congrats. 

1. No, you will not be able to claim this against the rental but you can claim against your new primary residence. 

2. Yes, you can claim it as maintenance/repairs/upgrades - I'm pretty sure, but check with your CPA

3. Yes, as allowed. 

4. Insurance, make sure you change your rental's policy from a homeowner's policy to a rental dwelling policy. Update your billing (and really everything) to new address or go paperless the last thing your tenant needs to see is your mortgage statement. If the property is in an HOA/COA notify them.

And.... remember.  If you ever hope to get out of the first home you’ll need to do it in less than three so as to not pay a gain later.  Sometimes it’s worth it to do that and take the cash to invest elsewhere.

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