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Question
We own 2 homes, one we decided 2 rent out. Should we claim that home as a business? Do we need a bus. license?
We just a bought a home and we still have our other home. We tried to sell, but as you know the market is kinda slow. We are currently paying the mortgage on two homes. So we decided to rent out the other home. I'm concerned about what we should do. Should we treat this as a business and get a license? Open a second bank account strictly for this? In submitting our taxes we must report both homes......right? What should we do? I need some good expert advice. Thanks
3 months ago - 1 answers
Best Answer
Chosen by Asker
You do not need a license. You need differant home owners insurnace and you need to let the bank know the property is not owner occupied. I use a tax man myself, but you can only claim the interest on the home you live in. Not all of your property holdings, the rental is legally an investment property as soon as you rent it out. You add the rent to your earned income for income tax purposes. I do mine quarterly, but I hate writing huge checks to the IRS.
by Landlord
3 months ago
Asker's Rating: 