cash in your houseHomeowners in the midst of the current housing bust are seeking ways to break even on their real estate investments. Ride out the foreclosure flood or jump ship? Rent out my home or sell it? Here are some comparisons between renting and selling your home how they can best benefit you in these uncertain economic times.

Homes sweet homes: Before you decide whether to sell or rent, determine your home expectations. If you already have plans to buy another home, do you need the proceeds of your home sale to go towards the new one? Are you going to take a loss if you sell? If you consider renting out your current home, you have to make sure your rental income will cover some of the expenses that come with the new home such as mortgage payments, insurance, and property taxes.

The waiting game: For some, a move may be temporary due to military orders or a new job so renting out your home may be the best option. Also, if you want to sell but the property values have taken a considerable dive and you can’t sell at an acceptable price, you may choose to rent out your real estate property until the market picks up.

A taxing process: Renting and selling both have tax liabilities. If you choose to rent out your property, you have the benefit of deducting many out pocket expense related to managing the property. Plus you still qualify for a tax break if you’ve lived in your home for at least two of the past five years. However if you do eventually decide to sell, you could be taxed on the amount you depreciate. If renting turns your normal tax-free gain into a taxable one, you may want to consider selling in lieu of renting.

Deciding whether to rent or sell your property is a difficult choice.  It helps to study the current property pricing to see if your home will appreciate in time.   Also, contact a certified public accountant to see if you can make potential income.

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