Page 1 of 2 12 LastLast
Results 1 to 15 of 18
  1. #1
    Pro
    Points: 44,848, Level: 65
    Level completed: 46%, Points required for next Level: 702
    Overall activity: 0%
    Achievements:
    Veteran25000 Experience Points
    cycloneML's Avatar
    Join Date
    Mar 2008
    Location
    Kansas
    Posts
    2,127
    Points
    44,848
    Level
    65
    Thumbs Up
    Received: 9
    Given: 8

    Tax deductions from rental property

    Are these significant?


    Honor Before Victory

  2. #2
    Burgermeister!
    Points: 359,713, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 10.0%
    Achievements:
    SocialVeteran50000 Experience Points
    TykeClone's Avatar
    Join Date
    Oct 2006
    Posts
    23,152
    Points
    359,713
    Level
    100
    Thumbs Up
    Received: 383
    Given: 767

    Re: Tax deductions from rental property

    In what way?


    Asteroids are nature's way of asking "How's that space program going?"

  3. #3
    Speechless
    Points: 733,122, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 75.0%
    Achievements:
    SocialVeteranCreated Album pictures50000 Experience PointsOverdrive
    Cyclonepride's Avatar
    Join Date
    Apr 2006
    Location
    A pineapple under the sea
    Posts
    48,628
    Points
    733,122
    Level
    100
    Thumbs Up
    Received: 1,890
    Given: 899

    Re: Tax deductions from rental property

    I guess it depends on whether or not you are losing your *** in the process.



  4. #4
    Addict
    Points: 189,241, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 29.0%
    Achievements:
    Veteran50000 Experience Points
    Clark's Avatar
    Join Date
    Jun 2009
    Location
    Ottumwa
    Posts
    9,934
    Points
    189,241
    Level
    100
    Thumbs Up
    Received: 815
    Given: 96

    Re: Tax deductions from rental property

    I guess that depends on how much money you spend on repairs, utilities, property taxes, insurance etc.



  5. #5
    Hall-Of-Famer
    Points: 35,255, Level: 57
    Level completed: 84%, Points required for next Level: 195
    Overall activity: 5.0%
    Achievements:
    Veteran25000 Experience Points
    fccy's Avatar
    Join Date
    Dec 2008
    Location
    Forest City
    Posts
    3,599
    Points
    35,255
    Level
    57
    Thumbs Up
    Received: 29
    Given: 530

    Re: Tax deductions from rental property

    Are they significant? Yes.

    You need to define "rental property" first. I rent out half my house. I get tax deductions for what I spend on the rental half, and at least partial deductions for shared areas (i.e., lawn care). The good part of this is that since it is also my primary residence, I do not have to show a profit every so often, I can take a loss every year. If the rental property is not your primary residence, then you are running a business, and need to show a profit something like 2 out of 7 years.



  6. #6
    Addict
    Points: 92,066, Level: 94
    Level completed: 43%, Points required for next Level: 1,084
    Overall activity: 6.0%
    Achievements:
    Veteran50000 Experience Points
    capitalcityguy's Avatar
    Join Date
    Jun 2007
    Location
    Des Moines
    Posts
    5,515
    Points
    92,066
    Level
    94
    Thumbs Up
    Received: 200
    Given: 186

    Re: Tax deductions from rental property

    They definately add up. Why are you asking the question? There are a lot of deductible expenses with rental property. Examples: mortgate interest, property taxes, advertising, repairs, etc. On top of these, you have depreciation on the building and all the associated items such such as appliances, carpet, hot water heater, etc.


    CCG

  7. #7
    All-Star
    Points: 25,884, Level: 49
    Level completed: 34%, Points required for next Level: 666
    Overall activity: 2.0%
    Achievements:
    Veteran25000 Experience Points
    BenEClone's Avatar
    Join Date
    Mar 2006
    Location
    Lincoln, Ne
    Posts
    1,846
    Points
    25,884
    Level
    49
    Thumbs Up
    Received: 6
    Given: 15

    Re: Tax deductions from rental property

    Years ago we couldn't sell our house after moving so we rented it. The main tax benefits were in terms of depreciation. We accelerated depreciation and, for a while, had advantageous cash flow. But, when did sell, we had to recapture much of what we depreciated - not nice.


    “We’ve got a pretty good football conference, and we’ve got a pretty good conference overall. We’re still walking around with our heads held high and our chest out, about that.” Paul Rhoads

  8. #8
    Addict
    Points: 189,241, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 29.0%
    Achievements:
    Veteran50000 Experience Points
    Clark's Avatar
    Join Date
    Jun 2009
    Location
    Ottumwa
    Posts
    9,934
    Points
    189,241
    Level
    100
    Thumbs Up
    Received: 815
    Given: 96

    Re: Tax deductions from rental property

    Quote Originally Posted by BenEClone View Post
    Years ago we couldn't sell our house after moving so we rented it. The main tax benefits were in terms of depreciation. We accelerated depreciation and, for a while, had advantageous cash flow. But, when did sell, we had to recapture much of what we depreciated - not nice.
    yeah that's one of the downsides. Currently the IRS has a 250,000 exemption on paying taxes on the gains when selling your personal home. If you're planning on selling significantly above cost (unlikely given housing market, but possible I guess) I would definately sell rather than rent.



  9. #9
    Hall-Of-Famer
    Points: 58,943, Level: 75
    Level completed: 27%, Points required for next Level: 1,107
    Overall activity: 29.0%
    Achievements:
    Veteran50000 Experience Points
    CyCloned's Avatar
    Join Date
    Oct 2006
    Location
    Robins, Iowa
    Posts
    4,935
    Points
    58,943
    Level
    75
    Thumbs Up
    Received: 263
    Given: 110

    Re: Tax deductions from rental property

    There are no real deductions for rental property, but you can use the expenses of owning the rental property to offset the income from renting it. You will need to file a schedule E to report your rental activity on your personal tax return. As mentioned above, there are a lot of expenses that you can claim on the rental property. Two things to be careful of: If you have a duplex that you live in and rent the other part, be sure to keep good records of what items are personal and what are rental. For example if you pay the mortgage on and shared property you will need to split the mortgage between your personal deductions and your rental expenses.

    Secondly, be careful with what items are expenses and what are capital improvements. Technically anything that you do that is expected to last more than one year must be depreciated. So, for example, if you have a water heater fixed that is an expense, if you have it replaced, it is an asset and should be depreciated.



  10. #10
    Pro
    Points: 57,799, Level: 74
    Level completed: 50%, Points required for next Level: 751
    Overall activity: 0%
    Achievements:
    Veteran50000 Experience Points

    Join Date
    Nov 2006
    Location
    Madison, WI
    Posts
    2,190
    Points
    57,799
    Level
    74
    Thumbs Up
    Received: 99
    Given: 487

    Re: Tax deductions from rental property

    define deductions. define from. define significant.

    doesn't matter. no.no.no.

    Quote Originally Posted by cycloneML View Post
    Are these significant?


    I was a victim of a series of accidents, as are we all.

  11. #11
    Burgermeister!
    Points: 359,713, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 10.0%
    Achievements:
    SocialVeteran50000 Experience Points
    TykeClone's Avatar
    Join Date
    Oct 2006
    Posts
    23,152
    Points
    359,713
    Level
    100
    Thumbs Up
    Received: 383
    Given: 767

    Re: Tax deductions from rental property

    Quote Originally Posted by fccy View Post
    Are they significant? Yes.

    You need to define "rental property" first. I rent out half my house. I get tax deductions for what I spend on the rental half, and at least partial deductions for shared areas (i.e., lawn care). The good part of this is that since it is also my primary residence, I do not have to show a profit every so often, I can take a loss every year. If the rental property is not your primary residence, then you are running a business, and need to show a profit something like 2 out of 7 years.
    Starting in 2012, you'll need to start issuing 1099's for significant (>$600 in a year) expenses that you claim for your rental property.


    Asteroids are nature's way of asking "How's that space program going?"

  12. #12
    Addict
    Points: 73,701, Level: 84
    Level completed: 33%, Points required for next Level: 1,149
    Overall activity: 2.0%
    Achievements:
    Veteran50000 Experience Points
    cytech's Avatar
    Join Date
    Apr 2006
    Location
    Hiawatha, Iowa
    Posts
    6,211
    Points
    73,701
    Level
    84
    Thumbs Up
    Received: 12
    Given: 14

    Re: Tax deductions from rental property

    Quote Originally Posted by TykeClone View Post
    Starting in 2012, you'll need to start issuing 1099's for significant (>$600 in a year) expenses that you claim for your rental property.
    And you will need to provide your tenant with a 1099 showing how much they have paid you.



  13. #13
    Burgermeister!
    Points: 359,713, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 10.0%
    Achievements:
    SocialVeteran50000 Experience Points
    TykeClone's Avatar
    Join Date
    Oct 2006
    Posts
    23,152
    Points
    359,713
    Level
    100
    Thumbs Up
    Received: 383
    Given: 767

    Re: Tax deductions from rental property

    Quote Originally Posted by cytech View Post
    And you will need to provide your tenant with a 1099 showing how much they have paid you.
    I'm not sure about that - 1099's are typically issued by the payer and not the payee.


    Asteroids are nature's way of asking "How's that space program going?"

  14. #14
    Addict
    Points: 92,066, Level: 94
    Level completed: 43%, Points required for next Level: 1,084
    Overall activity: 6.0%
    Achievements:
    Veteran50000 Experience Points
    capitalcityguy's Avatar
    Join Date
    Jun 2007
    Location
    Des Moines
    Posts
    5,515
    Points
    92,066
    Level
    94
    Thumbs Up
    Received: 200
    Given: 186

    Re: Tax deductions from rental property

    Quote Originally Posted by cytech View Post
    And you will need to provide your tenant with a 1099 showing how much they have paid you.
    That doesn't make sense. 1099's are normally used to report sometype of income.


    CCG

  15. #15
    Hall-Of-Famer
    Points: 35,255, Level: 57
    Level completed: 84%, Points required for next Level: 195
    Overall activity: 5.0%
    Achievements:
    Veteran25000 Experience Points
    fccy's Avatar
    Join Date
    Dec 2008
    Location
    Forest City
    Posts
    3,599
    Points
    35,255
    Level
    57
    Thumbs Up
    Received: 29
    Given: 530

    Re: Tax deductions from rental property

    This is why someone does my taxes (the cost of tax prep for the rental half of the duplex is a tax deduction).



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
  • TV: FS1
  • FOOTBALL: Iowa State vs. West Virginia
  • November 29, 2014
  • 11:00 AM