Second home tax question Dear,
My wife and I bought a house in Floria early last year 2006 as an investment home and planed to make it as rental property and later will make it as our retirement home BUT: After rented it out to a friend family for 1 month, we realized that we will have a big negative CASH FLOW. In addition, the real estate market started to show some sign of a correction, we had decided to list it for sale and until now STILL NOT get it SOLD.
It's time for filing tax and we have these questions:
1. Can we claim it as rental property if we only rented it for 1 month and the other 9 months are vacant? We have paid for maintenant and PG&E, mortgage and property tax. We traveled 3 times for acquiring this property and paid quiet a few of money and wonder if we can claim all of those costs as a Capital Loss???
2. AND if we claim it as a second home for 2006 and when we will sell it in 2007, can we claim it as investment property with a BIG LOSS?
Thanks very much,
We are looking forward to your answer.
Tony |