Jan 30, 2010

If I rent out my old house and purchase a new one will I qualify for the tax credit?

Home owners have questions about the long time resident or existing home owner tax credit. The tax credit allows for up to $6500 to qualified individuals who purchase a home before April 30, 2010.

One question deals with what they can do with their current home. Can a home owner rent out their current home when they purchase a new primary residence and still qualify for the tax credit? Yes, as long as the new home is their principal home the law does not require you to sell your existing home. The home owner would also need to meet all of the necessary qualifications required to receive the tax credit.

I would suggest caution before deciding to become a landlord. Make sure you understand the laws that deal with leasing property in the State of Florida. You may also want to speak with a property management company about managing your home for you.


Related Florida real estate blog posts on the long-time resident tax credit

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