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We want to rent out our primary residence as a vacation rental four months out of the year while we travel overseas. What are the tax benefits and obligation if we do this?

Renting Primary Residence
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Wray Rives CPA CGMA
The tax benefits of renting your primary residence is that you will be able to take a tax deduction for depreciation and a portion of the utilities and other costs to maintain the home. The rent you receive will be income, but can be reduced or possibly completely offset by rental expenses including the above mentioned deductions. If the rental income is more than the allocated expenses, you would owe tax on the net profit.

The potential downside is if you later sell the home, you may loose some of the capital gain exclusion you receive when selling your primary residence. Potentially you could owe capital gain tax on at least a portion of the gain from selling the home.
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