rental property and tax filing?
Rent/year=15000
Mortgage taxes insur/year = 13500
sewer/water/year = 400
condo fee/year = 2400
how do I put this in my taxes?
Can I take a loss?
Rent/year=15000
Mortgage taxes insur/year = 13500
sewer/water/year = 400
condo fee/year = 2400
how do I put this in my taxes?
Can I take a loss?
?
You may only deduct the interest portion of your mortgage payments actually paid during the year. The other expenses are deductible. With a rental property, you will also need to depreciate your basis in the property and any appliances you've bought and installed as well. Failure to depreciate will cause significant tax problems for you when you sell it. If you don't know what these words mean, hire a CPA or EA to do your tax work.
R P
Hire a CPA to do your taxes. That way, you know they are done correctly and the portion that you pay for the rental property is a deductible expense against next year's income.
FYI, you canno deduct the principle amount of your mortgage payment, only the interest. You also need to take the depreciation because you have to claim it as income when you sell the property regardless if you claimed it or not on your return
Wayne Z
Schedule E.
However, it is a little more complex.
The entire mortgage payment is not deductible. Only the interest portion is. The principal is not.
However, you are also allowed to claim "depreciation" on the condo.
Normally, losses of up to $25k can be claimed on rental property as long as you do not file as Married-Filing Separately and your income is under $150k.
Usually, when someone has a rental property, the days of doing their own tax return are over. It is time to see a tax professional.
Alpha Beta
Schedule E ... but I would suggest using something like TurboTax or other software which will step you through the questions and fields to enter if you do not use a tax preparer. Based on what you said, you are about break even though be sure to include all expenses associated including (if it's not next door) you mileage to and from to check on it, depreciation, maintenance costs, etc.
When you say "Mortgage", you can only deduct the interest you paid on the mortgage. The depreciation will help offset the principal portion.
Judy
When you say "Mortgage taxes insur/year" are you including the whole mortgage payment? The part that goes to principal is not deductible. You show the rental income and deductible expenses including depreciation on a schedule E. If that comes to a loss, it can offset other income.