If you own a rent house , do you have to claim the income on your taxes?

Answer 1

You have to claim the net income or net loss after expenses on Line 17 of the 1040.

You will fill out Schedule E. You will list the rent received, then subtract expenses as listed on Schedule E.

If you have a mortgage on the house, you can subtract that interest. You can subtract the cost of purchasing the rent house over 27.5 years, using Form 4562.

Sometimes the expenses are greater than the rent income. In this case, your total income can be reduced by the loss on the rental property.

Here is Schedule E where the allowable expenses are listed.

http://www.irs.gov/pub/irs-pdf/f1040se.pdf

Answer 2

Yes. You claim rent, but deduct expenses like interest, taxes, depreciation, etc.

Answer 3

Yes, you do. However, you can deduct the depreciation, carpet cleaning, reshingling, plumbers, electricians' work, etc, as a business expense.