Should I Sell My Place or Rent It?
by Jacques Ambron
Sep 05, 2017 | 5877 views | 0 0 comments | 321 321 recommendations | email to a friend | print
Jacques Ambron is executive director of sales for Halstead  Forest Hills LLC.
Jacques Ambron is executive director of sales for Halstead Forest Hills LLC.
Q. I’m planning on moving my residency to another state. I’m not sure if I want to keep my place here and rent it out for income. What are the positives and negatives?

A. First of all, congratulations on your move. There are a number of considerations here. On the positive side, if your expenses are reasonable and you can get a good rent, you will realize income from it.

On the other side, you will probably need to hire a property manager. This can run 6 to 10 percent of the rental amount. Additionally, you will be responsible for repairs and upkeep, periodic painting and insurance premiums, among other expenses.

Some other considerations: If you change your mind and decide to sell at some point, you will have to pay a non-resident tax on the sale of the property. This is almost 9 percent of the adjusted sale price.

Also, if the sale of your property would result in a capital gain, you would lose the one-time tax credit afforded to sellers of their primary residence.

For a single person owner, that would be $250,000 and for a couple $500,000. You should discuss this with your accountant ,as there may be other ways to structure it if you decide to retain your home.

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