Taxes on a property that isn’t yet ins service

[Angelo Llamas]

My cousin that I have been trying to get on BP has an interesting situation. He bought a home for himself in Lodi California but work in the Bay Area long story short he can’t deal with the commute anymore and decide to stay with a buddy close to work. He’s wondering if he should rent it out but he did purchase the home and live in for months and has an fha loan. So if he were to rent it out wouldn’t that show up on his taxes and say if the bank finds out and is okay with what would he do with it on the tax side of things would he report it as soon as it it’s in service or what would he do for tax purposes. Or just wait until a year passes and he can rent it out  

[Sean O'Keefe]

Quote from @Angelo Llamas:

My cousin that I have been trying to get on BP has an interesting situation. He bought a home for himself in Lodi California but work in the Bay Area long story short he can’t deal with the commute anymore and decide to stay with a buddy close to work. He’s wondering if he should rent it out but he did purchase the home and live in for months and has an fha loan. So if he were to rent it out wouldn’t that show up on his taxes and say if the bank finds out and is okay with what would he do with it on the tax side of things would he report it as soon as it it’s in service or what would he do for tax purposes. Or just wait until a year passes and he can rent it out  

Following - I'm based in California in The Bay.