Jimmie Doerfler: Renovations are added to the basis for when you sell. It isnt a "loss" just less income you pay taxes on. If it is being rented for less than market value you cannot deduct the expenses.
Raymundo Kyser: Like it or not -- but when you are working on the tax return, it is irrelevant how YOU consider/view income & expenses. The only point of view here -- is that of the IRS. You sound like you are entirely uninformed on the subject of rentals and either need to take a quick course in Income Tax prep or hire a pro. Time is running out, so I'd recommend getting an extension. Caution: if you've never done that -- go see the Pro. It will work out to your advantage in the end...On the practical end: you can also then explain to your sister "my tax accountant says...and that is why I have to charge you more next year..."...Show more
Lucien Hellerman: I consider renting it a loss if she doesn't pay me for 6-7months since she is having a few hardships in ! her life.
Willis Liburd: renting to family members less than the market rate does not allow the expenses but you claim the income as rent income
Janita Tetlow: FMV on a rental has NOTHING to do with the amount of the mortgage, it has to do with how much like units are renting for in your area. Check the local classified and call a few brokers that do rentals to get a good picture of the FMV.As long as you are renting for FMV, you can claim the loss. HOWEVER, "I consider renting it a loss if she doesn't pay me for 6-7months" means you are renting to a family member since you are not collecting the rent every month. You are just being a nice guy. This changes things.Renting to a family member means you have to pick up the income, but can not take ANY expenses as deductions against that income. You should still be able to take the mortgage interest on your Schedule A."I have made additional renovations to the condo "What kind of "renovations"? only capitaliza! ble expenses are added to the basis. Painting the entire unit! is a repair. Replacing ALL of the windows is a capital expense. Replacing one is not. If you only have one, you would have to replace ALL exterior windows/doors to qualify....Show more
Barton Sease: You need to get professional assistance to set this up as a gift.No, you can't write off any losses, period.Under IRC section 280A, renting any dwelling unit for less than fair market value is considered personal use (whether it's a family member or not). Since it's considered personal use, you can't write off any expenses.You are required to report all rental income, but you can't deduct any losses. Those are the rules. Don't think that whether something makes sense means anything when it comes to tax law.Your best bet is to establish use of the condo as a gift, and establish your sister's payments to you as gifts. Then it's not a rental activity, and you don't have to pay tax on the rental income.But it's not something you can merely say "Oh, we'll say it's a gift." ! You need to structure the situation properly and establish the proper paper trail. You're likely to be audited anyway, so you'd do yourself a favor by hiring a tax professional who knows how all the screwy rules work and can help you avoid a tax catastrophe....Show more
Isreal Kochheiser: Hire someone to do your return.1. This is a NOT FOR PROFIT rental. You list all income from sis on line 21. You list expenses--limited to the amount she paid you--on schedule A. 2. A "loss" on a rental is defined differently than you are doing it. Not that you get to claim any anyway....Show more
Sylvie Snetting: The 16th modification says that taxes are to be paid by the organizations and that that is voluntary for the electorate SO ... we ought to continually not pay taxes both way. i have not paid taxes in line with se considering that 1997 besides. One ought to make money is order to pay taxes. yet you're accurate, gay human beings have a authentic beef. Peace
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