Hey guys just wondering if anyone has a good article on what to do when you start renting a property. My wife and I bought a house last year. Sometimes life has a way of complicating things and we moved out of state for a job which paid my relocation (I read somewhere that moving because of a job change outside of so many miles can affect when you don't have to pay certain taxes when you sell your house). We decided to rent out our property as it's in a good area. The mortgage after taxes and insurance and such was about 1400 a month although it's about to go up to like 1500 a month because they guessed my property taxes wrong for the year. We are renting it out for about 2200 a month and the property management company is taking 10%. We pay about 1k in estimated taxes per quarter because we are just not sure what to do and how to accurately estimate it. We went to a tax person but it was like an H&R block and there person wasn't fully sure either.. My wife and I expect our combined income to be 200k+ so that puts us in in a higher tax bracket I suppose.
Now I am not sure if there is anything else to do. I imagine my insurance my have to change? Do I need to tell the city what is going on? If I do decide to sell my house in the next couple years am I setting myself up to pay more taxes?
I've seen people say deduct management company, repairs, and depreciation. What does depreciation even mean? Just any good article or guidance would be awesome. I've been reading about it myself but didn't myself not fully understand all the terms. Not something they teach you in school.
Submitted June 24, 2018 at 08:47AM by PlebPlayer https://ift.tt/2tnfHqm
