Buying A Property Already Rented And Primary Residency
I am considering purchaing a condo which is already rented out to someone. I currently do not own any other property and I live in a corporate housing which is leased uner my wife's company name.
My question is whether I can claim primary residency at the new condo. I will have all the paperwork straightened out (driver's license, all my mail to the new condo, pay the state tax where the new condo is) and plan to file rental income for the rent I collect. I guess I can let my lender know that I intend to rent out the condo as well, if I have to.
I travel for my work a lot so I will likely be going to visit the area where the condo is (thus having the ability to produce travel receipts like airline ticket, etc. if it comes down to that)
do you think this is doable? The condo is in Florida and I can save a good sum of money by claiming primary residency there, both on the state income tax and also Homestead property tax break.
The short answer is NO.
In the IRS terminology, your primary residence is where you physically reside most of the time. In your case, your primary residence is the house you occupy with your wife.
In the situation you describe, your tenant would claim your condo is his primary residence.