okay. another scenario. I have two different mortgage lenders..an old one and a new one. If i had both mortgage interests the total is around $10,333.00. I did not include this in my tax. should i make an ammendment? what about rents? i recently received a document for 1400. I feel like an ididot! help!
2007-02-02 17:53:38 · 7 answers · asked by collegegirl 1 in Business & Finance ➔ Renting & Real Estate
typically if it's on your primary residence and it qualifies to be tax deductible then
wait, you have rentals? you should have some professional help for this!
2007-02-02 17:57:17 · answer #1 · answered by Sweet n Sour 7 · 0⤊ 0⤋
Assuming we are talking about the US...
1. Collect all the information and re-run the numbers. See how much they change.
2. If the change is minor you will likely see little change in what you owe. Technically you need to refile is you know the return filed is no longer a correct representation. At the same time if you do not owe any more there is not going to be a big problem.
3. What do you mean 'rents'? Rents you paid or rents you received as income on a rental property you own? Under reporting income is a problem if the income is a problem. Doing so intentionally is fraud.
If you have a rental property and we are talking about income you also need to make sure you handled the depreciation correctly. There is a specific schedule for rental property.
No idea if you are using Turbo Tax or not. If you happen to be using some software then run the software with the missing items includes and see what the result looks like. Check the IRS site for info on how to file an amended return.
2007-02-02 20:37:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, all mortgage interest is deductible. Make the amendment
What about rents? Did you pay or receive them? Paying them will not benefit you, and receiving them means you have to claim them as income.
My advice. Since you really seem to be in over your head, schedule an appointment with a tax preparer in a couple of weeks. Wait those couple of weeks for any more tax documents to come in, then take it all to the preparer and show them what you've done and all the new documentation.
2007-02-02 17:56:46 · answer #3 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
Mortgage interest is NOT a tax credit, it is a deduction, which lowers the amount of tax you owe (you won't get a refund of the total amount of mortgage interest you paid). Yes, file an amended return. You deserve whatever money is owed you. In the future, I suggest you pony up for tax software like Quicken or TaxCut. They take you through a series of questions so you don't miss deductions or credits and get the most money back.
2016-05-23 22:24:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You're allowed to take the mortgage interest on your first and second homes only.
If you rent out one of the homes, you have "passive income". If one of the mortgages is on your rental, you would apply the expense against your income instead.
For your home, you can use the interest on schedual A, for the rentals use schedual E.
If you think you did it wrong, fill out another set of forms and see how it turns out. Passive income is fairly complicated, you'll need to have someone help you with the details.
2007-02-02 18:01:05 · answer #5 · answered by Anonymous · 1⤊ 0⤋
how many lenders you have has no bearing on what you can write off, the IRS allows interest to be written off when it involves mortgages in most cases. Rents you received will have to be declared as income but you may use monies spent to maintain the property to offset that income.
2007-02-02 17:57:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If all of that mortgage interest is for your primary residence, you can deduct it.
If you pay rent, you can't deduct it unless you work out of your home. If you did, you could deduct a PORTION of that rent from your income.
2007-02-02 17:57:27 · answer #7 · answered by Yep! 4 · 0⤊ 0⤋