I would like to turn my residence into a rental : ezLandlordForms

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Rose W

started a topic over 11 years ago

I bought this place 20 years ago paid 75k for it. I have resided here all that time I would like to turn it into a rental. If 10 years down the road I decide to sell would I use the cost basis of 75k plus improvements or would I use the value of the place right now as a cost basis. I can only get 115,000 if I decided to sell and I have made so many improvements it is certainly not worth it to me to sell at that price. I am purchasing another place and don't need to sale

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Karen S

said over 11 years ago

The sales price of a home will always be what someone will pay for it. Regardless of when you bought, how much you paid, or how much you owe, improvements made... it's all based on the going rate and what a buyer will pay.

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Rose W

said over 11 years ago

I am trying figure out how I would report on tax form in the future for example my cost basis would be 75,000 paid for place 20 years ago improvements of 25,000 so in the future if I sold place for 110,000 the capital gains tax would be on the 10,000 Correct? The place is paid for and I really don't need to sell in order to make new purchase so I am thinking of turning into a rental.

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Ryan H

said over 11 years ago

Renting your home would be a smart option. You will be getting monthly rent from the property without losing the ownership. What more one can ask for! You can go for affordable home maintenance and property management services to save on your costs. I would suggest you to visit http://www.tropicanarealtyhomes.net/ for more tips.

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George B

said over 10 years ago

Well i think you have to consult all this any real estate group because they all the best deal on the rental property. I am sure they will give you best offer for your property.