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Just Purchased Home, Got Transferred, Is There A Way To Rent W/o Penalty?

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  • Sunday, August 03, 2003 @ 06:10 PM EDT
  • 5 Comments

Just purchased a new home. A few days later, learned that I am to be transferred to a new state. Do not want to sell property, but now need to rent out. How can I rent out the home now without an IRS/lender penalty?

Comments(5)

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    2000rock3rd August, 2003

    consultants,

    If what YOU are saying is 100% provable...

    ....my accidental REI...

    YOU HAVE NOTHING TO FEAR...

    WelcomeToTheClub!


    ....as always,


    GoodInvesting, Rocky

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    td3rd August, 2003

    Wow,
    That is a bummer....What city are you in? May be able to put you in touch with someone. Drop me an email**please see my profile** and give me the details on the home..

    td

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    pmatheson13rd August, 2003

    If you are in an appreciating area, keep it and rent it. Try to rent it yourself 1st, while you are there. Look for possible property management firms, interview them, youmay need to use them if youare going far away. You may want to gat a HELOC while you are still Owner Occupant, to get most of your equity out to buy a new home. Don't expect th rent to cover your payments on a highly leveraged SFD.
    If your plans ligitimatly changed after purchase, no problem with lender. No problem with IRS that I can see.

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    consultants3rd August, 2003

    Thanks guys. I just need to read my contract carefully about not being able to live in for the recommended time. However, I do not recall a clause should you be relocated to another state. Need to figure out what the IRS codes say about the situation.

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    LynLinz3rd August, 2003

    Consultants
    The IRS isn't going to say anything about you renting your home .The only one
    interested would be the bank, and even then your circumstances have changed
    Don't worry about it . The only thing to be concerned about is if you are going to use it as a rental or sell it as your private residence. You must live in the house 2 out of the last five yrs [some exceptions] and it be your personal residence to avoid capital gains
    If you rent it out and then sell , you will pay capital gains and pay back depreciation that you have claimed to over the years to IRS,
    If you decide to rent you will have time to learn about all this. An accountant can set you straight

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