Renting your home while cruising...advice?
We''ve rented our house out in preperation for our 1-2 year cruise. Totally forgot to budget in taxes on the rental income into our cruising budget! Yikes! I just figured, the rental income pays the mortgage, so we''re even. Unfortunately not.
What''s the best way to file the taxes for this? My (very vague) understanding is that you can either file it as a for-profit venture, and get into depreciation and all that (which''ll entail keeping our accountant to file it for us, even MORE expense I hadn''t budgeted for!!!) or filing as "not-rented-for-profit" where you still have to pay the tax but it''s a simpler filing procedure and I can do it myself.
I might be wrong about those. Maybe there is an even better option.
But basically, we are on a VERY tight cruising budget, so even a couple hundred dollars will be a big deal. And a surprise expense of a thousand or something will be crippling. We''ll have no other income to speak of, other than maybe less than a couple hundred bucks interest on a MM account...(the kitty).
Any advice from those who''ve been there?