Quote:
Originally Posted by squiggs96
This is not correct. Without getting into too much detail, as each situation is different, you likely won't have any rental income once you take amortization. You won't have capital gains on your unit from inception if you set it up properly. Since it's a principal residence right now, and would be converted to an income property, there are steps to take to eliminate, reduce or defer any potential capital gain.
My best advice is to talk with a trusted advisor on the topic, such as a fellow CA.
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I would like to see an explanation, if you don't mind.
How does he stick handle thorough this and meet the objective of having rental money to pay for a new place? All that without being taxed on the income.
I did mention that maneuvering is required to escape capital gains. I was just making him aware of the need to do this. Otherwise you are on the hook for capital gains.