First, when you begin renting your house out, there are many benefits that you may see from this. First you are able to cover some or all of your mortgage. Instead of that money coming out of your pocket each month, someone else will pay for this amount or at least a large percentage of it. If you have $1000 mortgage, it is much easier to swallow paying $200 per month than the entire amount.
Furthermore, many of the repairs, maintenance and operations of the home. You essentially are turning your house into a business, and luckily for rentals, the IRS has allowed many advantages in the tax code for dealing with rentals.
Depreciation is a beautiful thing as well. Not only can you bring in additional income when renting out your home, you are able to offset much of that income with Depreciation. You will want to work with your accountant to get the proper schedule for your depreciation, but this will help keep your taxable amount down to a minimum.
Finally, even if you do not make positive cash flow off your rental. Luckily you can take that as a loss which can help to lower your taxable income. Sometimes it seems like foreclosure is the only option but make sure you do the proper research before jumping into a decision that big.
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