Hello and thank you for using Just Answer,Because you did not use the proeprty as your main home but allowed a family member to use the property, it is considered personal use and you would not be allowed to claim any loss for tax purposes if you sold and indeed had a loss.If you change to rental use you would be allowed to claim a loss for tax purposes. You would alos need to recapture any depreciation. This means that you pay tax on the portion you depreciated while rental use when you sale the property.Your question about a home equity loan is really out of the tax realm.
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If I change to rental, how long do I have to rent it to be able to sell it and claim tax loss? What if I can't find renter or have to rent it at a negative cash flow? Is there any other
You can generally deduct expenses of renting property from your rental income. You begin to depreciate your rental property when you place it in service. You can recover some or all of your original acquisition cost and improvements by using Form 4562 (to report depreciation) beginning in the year your rental property is first placed in service, and beginning in any year you make improvements or add furnishings. So as soon as you place the property as vailable for rent you can begin to use depreciation.As far as how long does it have to be rental, it is really the intent to rent for profit that is important. The IRS does not set down any specific time but you should be able to file at least one tax return with the rental listed. Even if you rent and sale in the same year.
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