Rules for deducting rental income/loss in California

Profile picture for ChrisMeunier
My situation: I own & live in my condo. In the next 1-2 years, my fiance and I would like to buy a larger home for us to live in and rent out my condo. I have figured that I would take a minimum ~$500 cash loss each month from renting the condo out (2000/month current expenses: PITI & HOA with rental income projected at $1500). I understand that I can deduct things like depreciation, maintenance expenses, mortgage interest/insurance/property tax. If I choose that, am I no longer allowed to deduct my mortgage insurance/property tax as an OWNER of a home would do? Would it be considered 'double counting' that deduction? In other words, I currently deduct my interest and prop tax every year and it saves me significant money. Would I still be allowed to do that, in addition to the rental deductions? Your feedback/comments are appreciated! If you can recommend any online calculators that help figure out if renting out a property is worth it, please send along!

Thanks,
Chris
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November 14 2011 - Campbell
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Answers (2)

Profile picture for wetdawgs
You need to meet with a tax accountant.

If I understand properly, you are wishing to double count expenses.  If you incur the expense once you can count it once. 
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November 25 2011
Profile picture for Joshua Rabinovitz
Chris, I would recommend that you talk to a credited accountant regarding this matter. Unfortunatly, Real Estate Agents are not allowed to give legal advice  [website deleted by Zillow moderator.  Please refer to our Good Neighbor Policy]. Best, Joshua Rabinovitz.
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November 24 2011
 

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