While there is a certain lure in the concept of ownership, it’s important to recognize that buying something isn’t always the best choice. The battle of rent vs. buy isn’t restricted to the housing market, either; consumers of all types need to think before they buy and weigh whether renting would make better sense. There are some [...]
Renting out part of your primary residence will change how your capital gains tax is calculated when you later sell. If you didn't have a rental property as part of your primary residence, you could save taxes on up to $250,000 of profit from the sale, if you're single. When you have a rental property as part of your primary residence you have to consider what percentage of your property is considered the rental property and your capital gains tax will change. How you use a property affects what kinds of tax deductions you can take and also how much capital gains tax you pay upon sale. You should consult a tax preparer for more advice when you have a rental property as part of your primary residence.