You can claim homestead for your principal residence. If you claim the tax deduction but you are not living there, this is simply tax fraud, and you know what this means. Other than this, I can't think of other issues.
If you use this as investment property, you could get lots of benefits ( offset your rental income, etc). However, you could not claim $500K tax exempt for a married couple anymore. Any straightline depreciation amount will be "recapitured" and pay income tax if there is any captial gain after you sell your house. You do not change the loan at all. However, you bascially can't be refinanced in most cases due to additional points for rental property.
i left it alone.. it was ur primary when you bought it and you have lived there for at aleast 18 months.. so the mortgage company should be okay...
N*s
12 楼
I think you have to report as rental property for tax return if you are getting any rental income. Also by changing to rental you can deduct all operating expenses like interest, tax, insurance gas, repairs to name a few. Don't forget to change your homewoner'policy to homesavers (or whatever they would call for rental properties) and let the lender know. I bet your lender will not increase your rate.