Rental Expenses
The most frequently asked tax questions related to Rental Expenses
For Tax Payers
Need professional help with a specific tax issue or have general tax questions? Ask a CPA is the easiest way to get advice from a licensed accountant in our network.
Ask a Tax QuestionFor Accountants
Provide answers to tax questions and introduce your practice to new potential clients. Build your CPAdirectory profile and earn reputation points.
Answer Tax QuestionsI rent my home out for two weeks each year. Do I have to show the rental income on my tax return ?
Asked Thursday, December 21, 2000 by an anonymous user
If you use a dwelling as a home and rent it for fewer than 15 days during the year you should not report any of the rental income and do not deduct any expenses as rental expenses on IRS Schedule E. You may deduct the mortgage interest and property taxes on IRS Schedule A.
What is the adjusted basis of my rental property?
Asked Wednesday, November 29, 2000 by an anonymous user
The adjusted basis is the amount used to determine your profit or loss on the sale of your rental. It is generally your original cost increased by the non-deductible closing costs at the original closing plus any capital improvements made over the years minus prior years depreciation and other capital write-offs.
Depreciation - Residence
Asked Monday, November 27, 2000 by an anonymous user
Depreciation may not be claimed on personal use property such as a residence. Depreciation expenses can be claimed on a Rental property or a business vehicle.
Rental Properties - What is Active Participation ?
Asked Monday, November 27, 2000 by an anonymous user
You may be treated as actively participating if for example you participate in making management decisions or arrange for others to provide services. Examples of management decisions are, approving new tenants, deciding on rental terms, approving capital or repair expenditures and other similar decisions.
Is the net income from my rental property subject to Self-Employment tax ?
Asked Monday, November 27, 2000 by an anonymous user
Generally not. Rental income from real estate is not considered self-employment income subject to self-employment tax. The exception to this is if you are considered a real estate dealer or income from a rental business where substantial services are rendered to the occupant.
As a Minister , is the rental allowance I receive taxable to me ?
Asked Monday, October 30, 2000 by an anonymous user
The rental allowance is tax free if the entire amount is used to pay rent and utilities. The church must officially designate the minster's compensation as rental allowance for it to be considered tax free. Retired ministers also qualify if the allowance is furnished in recognition of past services.
As a Rabbi , is the rental allowance I receive taxable to me ?
Asked Monday, October 30, 2000 by an anonymous user
The rental allowance is tax free if the entire amount is used to pay rent and utilities. The synagogue must officially designate the rabbi's compensation as rental allowance for it to be considered tax free. Retired rabbis also qualify if the allowance is furnished in recognition of past services.
Can I exchange U.S. real estate for real estate in a foreign country tax free?
Asked Monday, October 30, 2000 by an anonymous user
No. You cannot exchange U.S. real estate for real estate in a foreign country tax free. A person will not have to pay taxes on gains realized on "like kind" exchanges of investment or business property.
Is the rental income I received for renting my home for 10 days taxable?
Asked Thursday, October 19, 2000 by an anonymous user
If you use a dwelling as a home and rent it out for fewer than 15 days during the year, you should not include the rental income or deduct the rental expenses on your tax return. You may deduct the residence's mortgage interest and real estate taxes as a itemized deduction on IRS Schedule A.