Posted on: 10th Sep, 2009 05:12 pm
We rented out our first home for less than the mortgage payment still leaving us enough to afford a larger home. Our intent was not to make a profit but to rent it out long enough for the market to come back where we could sell it and break even. So the fact that we were not renting it at a profit then it couldn't be considered an investment property, right? Oh also we have lived in it for 4 out of the last 5 years. We want to qualify for the Mortgage Forgiveness Debt Relief Act if we have to give up the home due to financial losses. What do you think? Thanks
Hi unclebuck,
I don't think so. As you've rented out the property, it would be considered as your investment property. Thus, you won't be able to qualify for the Mortgage Forgiveness Debt Relief Act. You will only qualify for it if it's your principle residence.
Thanks
I don't think so. As you've rented out the property, it would be considered as your investment property. Thus, you won't be able to qualify for the Mortgage Forgiveness Debt Relief Act. You will only qualify for it if it's your principle residence.
Thanks
If you rented out a property and if you incure losses it will be considerd as looses. WHen you file for your tax, there is an option to take deductions for your losses
Since you rented out this will not be your primary residence and you will be liable to pay taxes if some part of your loan was forgiven
Since you rented out this will not be your primary residence and you will be liable to pay taxes if some part of your loan was forgiven