I have a house I bought in 10/2007. I may have to move to another state to find work. I don't want to sell as I will have to take a loss and would like to keep the place and retire here. PIT is 1400.00/mo. with 28+ years left. Income around 70K. I will be renting myself at new location. I was thinking of renting the place out while I am gone and let a management company look after it. Probably could get 800/mo. after management fees.

Anyway, questions are will I still be able to deduct my taxes and interest in full as usual? It would still be my only house, just not be living in it or the state. What if I just leave it vacant and not rent it out and call it a vacation house, all the while having to rent in my new location. If not what IRS pub explains all this?

Thanx!

Any info? I have same issue. Moved to California 3/1/09 and still have house in Michigan. I rent here... and rent house out back in MI. My company actually transferred me out here, and then laid me off on 7/6/09. I think I need to hire a tax consultant because of all the moving expenses, relocation, now I'm laid off so will have new expenses for job search.. If I turn the house into a rental property, I will be able to claim trips back to Michigan, but also pay more in taxes, etc. We should talk!