Rental Expenses
The most frequently asked tax questions related to Rental Expenses
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Answer Tax QuestionsAre the costs for improving and repairing my house deductible?
Asked Saturday, September 23, 2000 by an anonymous user
No. House repairs and improvements on a personal residence are not deductible in the year paid.
While the repairs are not deductible, the improvements should be added to the residence basis to be used in the eventual gain or loss on the sale of the residence calculation.
Generally, residence basis would be the initial cost plus improvements from inception. Generally, Costs for improving and repairing your rental property are deductible in the year expensed.
While the repairs are not deductible, the improvements should be added to the residence basis to be used in the eventual gain or loss on the sale of the residence calculation.
Generally, residence basis would be the initial cost plus improvements from inception. Generally, Costs for improving and repairing your rental property are deductible in the year expensed.
Can I deduct the cost of my trip to look at a rental property upstate?
Asked Saturday, September 23, 2000 by an anonymous user
Yes. Expenses incurred in managing investment property are deductible even if the property is not currently producing income. You will list this deduction on Schedule E, part I expense line for auto and travel.
Is the amount I pay for rent deductible ?
Asked Monday, September 11, 2000 by an anonymous user
No. Rent payments are not deductible for Federal purposes. Some states allow a deduction or credit for rent paid. Speak to your local CPA for a possible deduction or credit on your state tax return.
Are the total closing costs I paid when I purchased my house deductible?
Asked Monday, September 11, 2000 by an anonymous user
NO. Only the mortgage interest and real estate taxes paid at the closing are deductible in the year paid. The other costs at closing are added to your cost basis of the residence (and improvements over the years) to be used when you sell the residence to determine if there is a gain or loss on the sale.