Question:
“I just finished renovating my condo. It has never looked this good in the 20 years I’ve owned it, so I’ve decided to keep it and rent it out…”
Answer:
Since you did so much to your condo, be sure to get a big security deposit from a potential tenant.
You may even want to visit where they’ve been renting to see how they take care of it. That will give you a clue how they’ll take care of your condo.
Also, be aware of the tax laws and how they impact you.
Under IRS Code 121, you have 3 years from moving out to sell and close so you can take your profit up to 250K tax free.
See “Ownership and Use Tests” on the IRS website.
And since I’m not a tax professional, verify all this with a pro.
