I’m thinking about buying property in another state and renting it out for a couple of years, but I do not own any other properties. Would this be considered an investment property for tax purposes or could I file as primary residence, although I don’t live there, but plan to in the future?
Tyler
Comments
It would be an investment property. You can only legally claim
it as primary residence if you live there.
Any property you purchase anywhere is considered investment property as you have the plans on making profit from it.
If you are buying it for tax purposes you need it to be an investmant property. If it is considered your principle place of residence then you cannot get tax deductions on it as it is not an income producing asset. Living in it in the future may work well to decrease your capital gains tax. Good luck
If you get a loan that says you live there (or intend to live there) when actually you intend to rent it out for a couple years, you are committing loan fraud (the FBI is looking for people who do this). If your Realtor or loan officer help you do this, they are committing crimes as well.
Yes, what you are proposing is a purchase of an investment property. Don’t let anybody tell you otherwise.
If you buy a real property in another state it could be worth as a great investment by renting it out to tenants who has good credit. If you are going to sell it for pure profits than I would recommand the Home Sale Kit It’s valid and legal in all 50 states and the District of Columbia. It save me thousands of dollars on broker’s fees selling it myself. You can save thousands of dollars in broker’s commissions by utilizing the proven techniques outlined in this kit. It has been designed by experts in the fields of law, residential real estate, and advertising. You sell your house without a real estate agent it’s easier than you think! (Includes Diskette).
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