Comments on: Thinking Through ‘I’ll Just Rent It For A Year’ http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/ Everything you need to know about Tucson and Real Estate - and then some Thu, 02 Sep 2010 01:54:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Steve Berg http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/comment-page-1/#comment-637 Steve Berg Tue, 27 Nov 2007 23:22:57 +0000 http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/#comment-637 John - You make an excellent point! This exact scenario happened with my neighbor who kept renting his home (formerly his primary residence) with expectations of greater and greater appreciation. Each year he would call me and ask what it was worth, even after prices started to decline. He was in denial and he has now missed his window for the primary residence exclusion. Now it's an investment property that has lost about $100,000 in value from the peak. This is a great example of the difference between professional and amateur investing. John – You make an excellent point! This exact scenario happened with my neighbor who kept renting his home (formerly his primary residence) with expectations of greater and greater appreciation. Each year he would call me and ask what it was worth, even after prices started to decline. He was in denial and he has now missed his window for the primary residence exclusion. Now it’s an investment property that has lost about $100,000 in value from the peak. This is a great example of the difference between professional and amateur investing.

]]> By: John Wake http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/comment-page-1/#comment-634 John Wake Tue, 27 Nov 2007 17:14:04 +0000 http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/#comment-634 I saw Shailesh Ghimire's post from Steve Belt which lead to Steve Berg's and now your post. There is an expiration date, or should be, on this strategy of turning your primary residence into a rental. "The problem with renting it out is if you don’t sell your former primary residence within 3 years of starting to rent it out [more specifically, 3 years from it not being your primary residence], you will lose the $250,000 ($500,000 married couple) capital gains exclusion from federal taxes. If you have a lot of equity in your home, you probably don’t want to lose that capital gains exclusion." http://www.arizonarealestatenotebook.com/2007/09/04/frustrated-with-selling-thinking-about-renting/ I saw Shailesh Ghimire’s post from Steve Belt which lead to Steve Berg’s and now your post.

There is an expiration date, or should be, on this strategy of turning your primary residence into a rental.

“The problem with renting it out is if you don’t sell your former primary residence within 3 years of starting to rent it out [more specifically, 3 years from it not being your primary residence], you will lose the $250,000 ($500,000 married couple) capital gains exclusion from federal taxes. If you have a lot of equity in your home, you probably don’t want to lose that capital gains exclusion.”

http://www.arizonarealestatenotebook.com/2007/09/04/frustrated-with-selling-thinking-about-renting/

]]> By: Steve Berg http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/comment-page-1/#comment-609 Steve Berg Fri, 16 Nov 2007 14:51:30 +0000 http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/#comment-609 Kelley - Maybe abominable is a better term to describe me. I'm just Kris's little sidekick. But thank you for your positive acknowledgement. As our Governor likes to say, "I'll be back". Kelley – Maybe abominable is a better term to describe me. I’m just Kris’s little sidekick. But thank you for your positive acknowledgement. As our Governor likes to say, “I’ll be back”.

]]> By: Kelley Koehler http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/comment-page-1/#comment-607 Kelley Koehler Fri, 16 Nov 2007 05:40:58 +0000 http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/#comment-607 the indomitable steve berg? companion to the incomparable kris berg? commenting on my blog? i'm honored! the indomitable steve berg? companion to the incomparable kris berg? commenting on my blog? i’m honored!

]]> By: Steve Berg http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/comment-page-1/#comment-606 Steve Berg Fri, 16 Nov 2007 04:31:13 +0000 http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/#comment-606 Kelly - Thanks to the comparison by Steve Belt at the Phoenix Area Real Estate Blog, it appears that great minds think alike. Except that you are much more analytical. Very well done. Couldn't have said it better myself. And didn't! Kelly – Thanks to the comparison by Steve Belt at the Phoenix Area Real Estate Blog, it appears that great minds think alike. Except that you are much more analytical. Very well done. Couldn’t have said it better myself. And didn’t!

]]> By: Should you rent or sell your Phoenix area property today? | Phoenix Area Real Estate Blog http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/comment-page-1/#comment-605 Should you rent or sell your Phoenix area property today? | Phoenix Area Real Estate Blog Thu, 15 Nov 2007 19:28:59 +0000 http://www.mytucsonblog.com/home-selling/thinking-through-ill-just-rent-it-for-a-year/#comment-605 [...] the last week, Kelley Kohler and Steve Berg each wrote well thought out articles regarding the merits (or lack thereof) of [...] [...] the last week, Kelley Kohler and Steve Berg each wrote well thought out articles regarding the merits (or lack thereof) of [...]

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