Where to retire???

[Jim Godward]

Wendy,

Be careful if you are considering MT.? Go to this URL and read all the requirements.? I have included the most critical but each is explained in detail on the web site under licensing,

www.doj.mt.gov

New Drivers
Individuals wishing to obtain a Montana driver's license must:

provide parental consent and complete the graduated driver licensing process if they are under 18
pass written, vision and driving tests
provide proof of identity
provide proof of Montana residency
provide proof of authorized presence

 

[Wendy]

Thanks Jim. Sounds like Montana may be as particular as Oregon. At least in Oregon, I can live on Mom & Dad's property for a few months and have a real address. Why do states make it so hard?

 

[Jim Godward]

Blame the Feds, it is part of the effort to controll access to drivers licenses since we use them for proof of residency, ID etc.  It is supposed to be applied in all states according to what I was told.  I'm sure some states will drag their heels!  VBG

 

[woodartist]

Yeah, 2008 is suppose to be the date. Also you will need a passport to travel back in from Mexico....and I think Canada. The terrorists really won

 

[blueblood]

If we make a profit on renting the house, we would have to pay income taxes on that profit. However, in our economically deprived part of the country, we won't make an money on the rental. (Rent minus mortgage payment minus expenses = profit In our case zero)

Actually any loss is tax deductible on Scedule C including a factor you didn't mention - depreciation. Thus, your taxes paid will be reduced. The only downside, is that depreciation lowers cost basis which would increase gain but if your not close to the 250/500,000 limit then no consequence.

 

[Tom]

In addition to Leo's comments, any improvements you've made might increase the cost basis (reduce the gain). But, as always in these discussions, consult a tax professional.

 

[BernieD]

Wendy

I am not trying to give you tax advice but your mortgage payment is not deductible from the rental income. Only the interest portion is. As Leo noted, you can also deduct depreciation but that can be taxable separate from the $500,000 gain exemption when you sell the house.

 

[Wendy]

Wendy

I am not trying to give you tax advice but your mortgage payment is not deductible from the rental income. Only the interest portion is. As Leo noted, you can also deduct depreciation but that can be taxable separate from the $500,000 gain exemption when you sell the house.

You're right Bernie but we're in year 6 of a 30-year mortgage so the interest is practicaly the whole mortgage payment. The insurance and property tax would also be deductible on a rental. As for depreciation, odds are there won't be any as housing in this area continues to appreciate and I don't see the value falling below the basis of the house (unless the tenants totally trashed the house but then the repairs to bring the house back up to value would be deductible as repairs).

Mike has a much easier solution to all this....he says sell the house and put all our stuff in storage.

 

[blueblood]

As for depreciation, odds are there won't be any as housing in this area continues to appreciate and I don't see the value falling below the basis of the house (unless the tenants totally trashed the house but then the repairs to bring the house back up to value would be deductible as repairs).

Mike has a much easier solution to all this....he says sell the house and put all our stuff in storage.

Financial depreciation on a home is deductible annually regardless of the fact that home value is appreciating.

 

[BernieD]

As for depreciation, odds are there won't be any as housing in this area continues to appreciate and I don't see the value falling below the basis of the house (unless the tenants totally trashed the house but then the repairs to bring the house back up to value would be deductible as repairs).

See Leo's comment. IRS has been known to attribute depreciation even if you didn't deduct it. That could lead to a significant taxable gain on sale.

Mike has a much easier solution to all this....he says sell the house and put all our stuff in storage.

Of course that leaves you with a depreciating motor home and no appreciating real estate :-\

 

[Wendy]

Of course that leaves you with a depreciating motor home and no appreciating real estate :-\

Which is why I just can't let go of the house as long as we can get enough rent to make the mortgage payment. It's also my "escape hatch" should we decide we hate full-timing and want to go back to living in a stick house. Plus I'm 75% Irish and have these genes that demand that I own land.

 

[Jeff]

Which is why I just can't let go of the house as long as we can get enough rent to make the mortgage payment. It's also my "escape hatch" should we decide we hate full-timing and want to go back to living in a stick house. Plus I'm 75% Irish and have these genes that demand that I own land.

We looked at renting but the reatal rates did not come close to covering, wear and tear, insurance, and any kind of return on the value of the houise, even at 3- 4%.

AS Mike suggests what we could not bear to part with is in storage where we stop by and add a little more to the pile every few months.

 

[macleay]

To register a vehicle in Oregon, you have to have an Oregon driver's license. To get an Oregon DL, you have to show pieces of evidence of residency from a list they have that includes a rent receipt, utility bill, items mailed to you at an Oregon address, etc. Used to be, all you had to do was give them an Oregon address. I can only imagine that it has been pressure from adjoining states (California, Washington) that has made Oregon tighten up on DL and vehicle registration residency requirements.
[/quote


Unfortunately, however, one of the things you DON'T have to provide to get an Oregon driver's license is proof of US citizenship.

 

[woodartist]

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[macleay]

Sorry, I'm technically challenged!  I meant to quote wendy's post about the requirements to get a driver's license in Oregon and add:

Unfortunately, however, one of the things you DON'T have to provide to get an Oregon driver's license is proof of US citizenship.