Renting Out Miami Condos

When you are pondering the idea to rent out your Miami condo there are several important things to consider before you make your decision. These factors will to a great extent be affected by the planned length of the rent period. Are you using your Miami condo just a few weeks a year, and plan to rent it out for the remaining months? Or is your Miami condo your permanent residence that you would like to rent out for a shorter period, such as a few weeks or months when you are on holiday or visiting relatives? Since Miami is a popular destination for vacationers, renting out property can be financially beneficial even if it just for a few weeks.

One important factor that many Miami condo owners forget about when renting out their condo is the potential tax implications. As you are probably aware of, a home owner living in his or her condo is entitled to considerable tax deductions when selling the property. If you are single, you can save up to $250,000 when you sell your condo. Married couples filing jointly after selling will consequently be eligible for up to $500,000 in tax deductions when they sell a condo that they have been living in. The key factor here is however that little word “living”. If you rent out your Miami condo for too long, and subsequently sell it, you might not be eligible for the tax deduction since you have not actually been living in your condo.

To be entitled to a tax deduction you must have lived in your Miami condo for at least two of the last five years. You can stay eligible for such tax cuts even if you rent out your Miami condo, as long as you sell the property within three years after renting it out, since you only have to have lived in the condo for two years during the last five years. This is only important to consider for those planning on renting out Miami condos for a longer period of time. Renting out your Miami condo for a few weeks while you are on holiday can naturally not be viewed as not living in your condo. You can also avoid loosing your privileges by simply moving back to your condo and staying there for two years before selling it.

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