Ask Experts Questions for FREE Help !
Ask
    Gansbm's Avatar
    Gansbm Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 12, 2013, 01:24 AM
    Tax benefits on secondary house
    Hi,

    I am currently residing in CA, planning buy a house in TX (my first house). Since I am planning to rent this house, can I get the tax benefit as if I live in the house or is there any difference.

    I really appreciate your answer.

    Thanks and Regards,

    VB
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
    		  
    #2

    Nov 12, 2013, 05:23 AM
    There is a big difference, and it can get complicated.
    You get the mortgage interest deduction if any.
    You must depreciate the house (as an investment).
    You must pay tax on the rental income.
    You deduct expenses and certain advantages when not rented.
    You pay capital gains when/if you sell - and that's the killer.
    There are ways to avoid capital gains by moving in to the house for some number of years, but since laws change, you wait until then.

    Or are you talking about first time home buyer programs? They apply to your primary residence only.
    http://www.txhomeprograms.org/progra...ail.php?id=164
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Nov 12, 2013, 09:38 AM
    Joypulv's answers covers the question well, but you should really meet face-to-face with a local tax professional to cover all facets of your decision to buy a house.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Can I claim secondary health insurance premiums as tax deductions [ 1 Answers ]

Can I claim premiums I pay for secondary health insurance as a tax deduction

US tax treat benefits in MA tax filing for Indian citizens [ 2 Answers ]

Hello All, I know this question has been floating around for a while. But could please someone provide me the firm answer to the question- Can a non-resident take the benefit of US-tax treaty on MA state tax filing by mentioning the amount in Schedule Y. I'll appreciate quick reply. Thanks...

Can I get Tax benefits if my husband show as her spouse was on H4 during tax exemptio [ 1 Answers ]

Hello, My details: Name- deepti Status- married Visa- h4 My husband went to US from India on January 1 2007. I have also joined him. I am eager to know , will we able to get tax exemtions if he mention me as dependent . Our stay in US is till August 2007. Can we get some tax benefits.

View more questions Search