I am trying to decide to rent out or sell my current condo and unfotunately no options are great. I have read conflicting information about the tax issues of renting property. It is currently my primary residence but I would be moving to something bigger (renting likely) and to avoid selling for a loss would rent out my current place.

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First, I assume that I have to claim the rental payments as income and I assume that is the case even if the rent I receive is less than what I pay in mortgage and condo fees?

Can I still deduct interest payments even though not my primary residence?

Are condo fees deductible on a rental property? I had heard that they are but that seems odd since they are not currently deductible.

What else can I deduct? I believe you can deduct home improvements measures. Anything else?

how about depreciation? Is there an income limit on if you can claim that and how does it work? Straight amount deducted off income as any other deduction?

Any suggestions on how to find a good tax/financial advisor to help with the rent out vs sell options? I am in northern VA

Thanks for any help.

Any revenue resulting from the rental would be income.

Money spent on the rental would be deductions. Durable portions of the property like your share of the building (including parking, hallways, sidewalks etc), HVAC equipment, kitchen and laundry appliances and carpet would be deductible through depreciation. Less durable expenses (minor repairs, mileage to collect rent, landscape services) would be deductible in their entirety each year. Direct (on your unit) or indirect (through the association) improvements to the building or other durable assets n the unit during the period you use it as a rental would be subject to new depreciation schedules on those improvements.

Your basis in the unit would have to be calculated when you convert it into a rental. Your basis would include the amount you paid for the unit plus the remaining value of improvements you've made since the purchase. Depreciation deductions would be calculated from that basis.