MUST I Sell My Rental Property To Pay Off My Primary Residence Mortgage?
Let me first say that I believe real estate can be an excellent way to diversify your investments. I have already been a landlord of three solitary family homes for the last 16 years. However, I am not an expert in fees, so my first advice regarding this question would be to talk with an enrolled agent, accountant, or other tax advisor who could address your unique situation.
One of the largest considerations would be your tax liability upon sale of the investment property. In order to avoid paying capital increases taxes on the sale of a true home, you’ll want resided in it as your primary home for 2 of the 5 years, that you are said by you never have. 33,900). You’ll also pay your earnings taxes rate on the entire amount of depreciation for the years you have used the home as a rental. 11,250 in fees. You need to pay the taxes on the depreciated basis whether you can and do fully declare that depreciation over time.
If you never have been using a Schedule E to consider those depreciation deductions, you can amend up to three years of returns to do so. This would most likely be in your favor. Another factor would be whether or not you have come to depend on that regular rental income. Do you save it?
Do you utilize it to pay down other debt? Would it is missed by you in your monthly budget? Like Tom said, your present …