How to Get Tax-Free Profit From Your Rental Home

Video Transcript

"Hmm, do you have a rental home and wonder, am I maximizing the use of having this rental home for tax purposes? Well, my name's Danielle Loughran. I'm a CPA with Accell, and I'm here to talk to you about how to get tax free profit from your rental home. The first thing I to have to tell you, you might not like to hear. It's a common misconception, but you do benefit from having the rental home, when you actually sell the rental home. So, first you have to assume that all of the requirements are met, and there sure are a lot of 'em. But one requirement that's easy to remember, is that you need to have used and lived in the rental property for at least twenty-four months out of the past five years. Well, does that mean that you have to spend two years there? No, you just have to spend at least twenty-four months. So, you could have long summers there, then go back to your other property, and then go back. However, you can get those twenty-four months is fine. And then, you start getting into the improvements, and what kind of income you can have, and things like that. The end of the day, the easiest way to explain it to you, is that, when you sell the property, that's when you're going to see the benefit. Unfortunately, this is a little bit complicated of a topic, and my best recommendation would be for you, to visit your local CPA, and get some solid advice. My name's Danielle, and I hope that I've helped you understand your rental property."