Real Estate Tips from Bob Rich-When Homes Becomes a Business

Your home becomes a business if you decide to rent it out and move to another one. The costs for running the property are subtracted from the rent to determine the net income from the operation--just as in any other business. Among the expenses that can be charged off are interest on the mortgage, maintenance, agent's fees, utilities if you pay them, insurance premiums, and depreciation.
If you sell a house you rented versus a home occupied by the owner--there are important tax differences. Depreciation claimed must be added to the sales price for taxes. Also, you can't defer the profit from the sale by buying another house. However, you can charge off a loss on the sales against your income for the year. Tax-wise, renting out your home is a whole new ball game. So as not to pass up any money saving deductions, I suggest you put your return in the hands of a good accountant.
Contact The Rich Company for Washington NC real estate and properties throughout eastern North Carolina.