Suppose you are someone who lives near a college town or resort area and have extra rooms to spare in your home. You think to yourself, why not rent out one of the rooms since you aren’t using the space and make some extra money? Well, you could. But, since you are receiving rental income now, taxing authorities also want their share.Read More
Tax Warrior Chronicles
If you own a second property, especially in attractive tourist destinations like a beach or ski resort, you may consider renting out the property to defray the costs of ownership. There are a few tax considerations to know of before you purchase an investment property or convert an old residence. Below is a summary of the treatment of income, expenses, depreciation, and basis considerations of your second residence.