I lived in primary residence 9 months in 2020 and then tried to rent it in Oct-Dec 2020 with no luck. Then tried in 2021 to rent with no luck but then decided to sell in summer 2021. What's the best way to handle this for taxes? Is it worth having it as an investment property for Oct-Dec 2020 and then Jan-July 2021 and write off the mortgage/taxes/depreciation/etc. Then do depreciation recapture for 2020 and 2021. Or just keep it as primary residence. I lived there 10 yrs and was my primary so no cap gains to worry about?
- 30% tax bracket
- Total costs to write off: $24,700 for Oct-Dec 2020 as a rental
- mortgage: $9k in Oct-Dec 2020
- prop taxes: $3K Oct-Dec 2020
- depreciation: $10k total for Oct-Dec 2020
- HOA: $2400 Oct-Dec 2020
- Utilities: $300 total
- No other investment properties so no other rental income
