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Financial Planning / Tax Strategies
|Subject: Converting Condo home to rental property||Date: 5/8/2004 4:22 PM|
|Author: Foolferlove||Number: 71767 of 121061|
It is likely that in a couple of years we will move out of our condo and begin to rent it.
We have made significant improvements to the interior while we have lived here. In addition, there have been assessments by the homeownwers association for major structural repairs, as well as landscaping and pool improvements.
1) Do improvements made BEFORE the property becomes a rental property count for anything, tax-wise, when it finally does become a rental? As in, can it increase our basis in the property?
2)What about major structural repairs? It seems that typically repairs do not affect basis, and since the repairs were done before it was a rental that those costs cannot be deducted later, right?
3) Can any improvements undertaken by the condo association (such as landscaping) also be added to basis if the landscaping was done before the property was a rental property?
I'm asking because I need to know whether I should keep old receipts for the work we've done (or dig them up...not sure I've kept them). Also I have to begin to educate myself about tax implications in order to decided whether it would be better to rent or sell when we eventually move.
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