Mustachians,
My husband and I are relocating to California from Texas and have already decided to rent while we get settled. We were planning on selling our house, but now wonder if the potential tax deductions of a rental property would be advantageous given the new tax laws. What would you do?
Details:
Pre-tax combined income of $375K
Home purchased in 2013 for 280K, could sell for 425K today
Could rent home for ~$2250/month
Operating cost of mortgage+insurance+property tax = ~$2000/month
Owe 155K on mortgage
Max out HSA & 401K annually
No other properties/businesses
Married couple in 30s, no kids
Should we sell now, taking advantage of the hot market and no capital gains tax? Or should we rent the house out, as a couple or considering forming an LLC? With the new tax law, we are pessimistic about our tax liability next year.
SmartMoney