We are moving out of state for a job and need to rent our home, as the market is saturated with homes preventing us from selling. I do not want to lose the tax advantages of having the primary residence write off, and am concerned about how this wil affect our taxes. We will be renting in our new community.

We will be carrying close to 500 a month in overage as we cannot rent it for the amount we pay in the mortgage. We purchased this home in Sept 2009 and wil be looking to rent it by Aug 2011. Our joint income is under 124K.

Our mtg is 2400/mo and best case scenario rent would be 1975/mo. Are there really any benefits at tax time for renting this home? Or, should be try and sell it at a loss?