Is the money I lost on my rental house tax deductible?

Question

I owned and lived in a home before moving to another town. In the new town I rented a house. For 3 months the house I owned was vacant and then once rented I posted a monthly loss. Is the money I lost deductible?

Answer 1

Rental Property transactions go on Schedule E.

The losses are deductable assuming that you are renting it at "Fair Market Value" (or above) for your area.

Answer 2

once you began renting out your house, this could have more advantageous on a "deemed disposition" at straightforward marketplace cost with the help of a change in use from position of residing to house substances. Any income will be tax free because it grow to be your major position of residing on the time. notwithstanding the house grow to be quite properly worth on the time of the synthetic in use would grow to be the present "cost". for that reason once you offered the house 4 months later, your income or loss will be the sale cost a lot less very last expenses, a lot less the straightforward marketplace cost on the time you began renting it out. The house income is taxable income and could be stated on your 2008 tax go back. you're allowed to deduct expenses which includes loan pastime, substances taxes, utilities, upkeep and upkeep, yet only for the era that the valuables grow to be being rented.

Answer 3

Yes, after it was rented. But be careful in calculating your loss to include only allowable expenses. You can't take your whole mortgage payment, for example.

Answer 4

yes on a schedule C. But only after you rented it.