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Do I owe tax if I rent out my house and then rent another place to live in?

I own a house in CA and am considering relocating to another state for a job. If I keep the CA house and rent it out, then pay rent for a place in the other state, will I be taxed on rental income? In effect my paying rent is an expense against the income from the rent I receive, no? Assume the rent I pay is equal to the rent I receive, and assume this is also equal to my mortgage + property taxes. Thanks.

Public Comments

1. No. You have to include the rental income as part of your income. You do NOT get a deduction for your personal expense in renting elsewhere. This is NOT a business travel expense as you have to live somewhere. You do get to deduct the mortgage interest on the rental property and take a deduction for depreciation.
2. You get no write off for the rent you pay. For the house you will convert to a rental you will use Schedule E Rents and Royalties to report the income/expenses/depreciation on the rental. It's complicated, I'd suggest you use a tax preparer.