I am thinking about renting out my current home (and leasing another one), and I'm wondering what the tax implications are of a rental property. And info is appreciated!

[Anonymous]

you could cease rental so you've occupied it 2 out of the 5 years before sale.  but remember that the depreciation you've taken will be taxed when the property is sold,,.    (there might be an exception if you sell your house at a loss, but because tax laws are constantly changing, nothing is assured)

[Critter]

The IRS pub 527 has all the info you need on being a landlord :  https://www.irs.gov/forms-pubs/about-publication-527

[Hal_Al]

Also see: <a rel="nofollow" target="_blank" href="https://www.nolo.com/legal-encyclopedia/top-ten-tax-deductions-landlords-29497.html">https://www.nol...>

[Hal_Al]

Another thing to consider:
The capital gain on the sale of your principal residence is tax free, up to $250,000 ($500K married). But, you must have lived in it 2 out of the five years prior to sale.

So, if you plan to sell, renting the house for 3+ years would wipe out that tax benefit.

[mzingale]

Thank you all for your input! I have another follow up question. If my state income tax is over $10,000 and the property tax on my rental property is $10,000, can I deduct the property tax against the rental income, and still use the entire $10,000 state tax deduction?

[Critter]

Yes because the RE taxes on the rental will no longer be reported on the Sch A ... it will go on the Sch E along with all the other expenses like insurance and depreciation.

[Hal_Al]

Schedule E is not part of itemized deductions.  That is, you schedule E deductions, even if you use the standard deductions instead of Schedule A itemized deductions.