Excited to learn

[Deepak Jebar]

Hi everyone, I stumbled upon BP while researching a company my friend recommended: HomeUnion I'm excited to read success stories that allow people to have financial freedom and pursue what they like. My goal is to do that too! I'm a software engineer by profession living in NJ right across Manhattan. I own a small condo and was happy claiming tax benefits on the interest I paid on my mortgage. I now have to relocate to Seattle/Bellevue area, probably permanently due to my wife's job. I'm pretty sure I will be able to rent my apartment out easily, even though the rent won't be enough to cover the mortgage, taxes, HOA and other expenses (I have a 15 year fixed mortgage, 11 years still remaining). I'm not planning to sell the property as I think this is a decent rental property. Because of the relocation and that I'll have to rent some place in Bellevue, I'm seeking help to figure out what best to do to help me with taxes. As I won't live in the condo, I assume I can't claim tax benefits. As I will rent it out, I need to declare rent as income and pay more tax on it. And on top of that, I'll be renting a new place, atleast for the next one year, which is an added expense. I'm a newbie here and haven't read any of the recommended books on this forum (which I will get to soon). I'm looking for pointers around the tax situation. My taxes have been straight forward all this while - one W2 per year and tax benefits due to the mortgage. No other sources of income nor need for itemized deductions. I was wondering if people setup LLCs or trusts or something like that for rental properties that will help reducing taxes Thanks and looking forward to learn and get on the way to financial freedom!