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.