If I am renting out a house, do i have to show the rent money i collect as income when I do my taxes?

Question

If i have to, is there any way around it?

Answer 1

Legally, you are supposed to. You may also deduct your expenses in connection with the rental property. Things like management fees, mortgage interest, property tax, repairs, any utilities you pay, trash service, water, etc. Many people have so many expenses in connection with their rental properties that they take a loss every year, and that loss (up to $25,000) is deducted from any regular income so they pay less taxes. Hope that helps!

Answer 2

There is a good chance it may benefit you on your taxes. The first thing you want to do is contact an accountant. You do have to report the income that you get from the rent. You also now have the opportunity to decrease the amount of taxes by depreciating the assets. The home, the appliances, repairs, and so on. That is why you need an accountant. You can only claim 3,000 loss for a year, the rest is deferred to the next year or years as needed to wipe out the loss. This is good for you, until you sell the house. Then you have to claim the capital gain which will be higher since you've been depreciating the asset. If this house was your primary residence for 2 of the last 5 years you may get away without claiming the capital gains.
See, things are starting to get complicated. Go see an accountant.

Answer 3

you can probably get by without claiming it, but it's not legal. The best thing to do is use a tax software program such as TurboTax and it will guide you step by step thru the process of filling out all the tax forms required, such as the Schedule E. It will also ask you for any monies you paid toward payments you make on a mortgage held on the house (if there is one), repairs, utiltities, and any other costs associated with renting the house. Chances are you will have enough things to "write off" to offset the rent you receive.

Answer 4

Income is income no matter where it comes from in the eyes of the infernal revenue service. However you will be able to offset such income from the provided for expense deductions on the rental. You need to review what the government says relating to your questions here
IRS: Residential Real Estate Rental deductions: http://www.irs.gov/publications/p527/index.html
IRS: 3.6 Itemized Deductions/Standard Deductions: 6. Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses): http://www.irs.gov/faqs/faq3-6.html
IRS: Time to keep records: http://www.irs.gov/businesses/small/article/0,,id=98513,00.html
IRS: Deductible costs when purchasing real property:
http://www.irs.gov/publications/p551/ar02.html#d0e2000
Buena Suerte

Answer 5

tell the definitely proprietor what issues you're encountering. He could have contracts drawn up by using a lawyer which will of course state that the administration (you) will basically wait a undeniable form of days for lease to be paid...after that, eviction observe would be served. determine each and every tennant gets and indications a replica of the contract...this grants a criminal outstanding to gather lease by using a undeniable time. There are additionally companies like HUD (Housing & city progression) who help with lease. according to risk those classes might help the tennants and you to get the money on time simply by fact HUD might pay a undeniable quantity and the tennant might then be in charge for paying their proportion ON TIME...in the event that they don't...they are dropped from this technique. So it somewhat is to their income to pay on time

Answer 6

Of course you do, that's why it's called "Income Property".
I hate to say this but, if you have to ask a question like that in here you should get yourself an accountant or tax preparer to help you with getting your returns filled out correctly otherwise you're going to overlook other items you should claim or even some deductions you might be eligible for that you might not be aware of.

Answer 7

Lilly is correct. I will add depreciation and since it is a home business, you receive deductions for that.

You can fly under the radar and probably get away with it. It isn't worth it, you will do better doing it right.

Answer 8

Do you want the legal answer or the realistc answer?

Legally yes, although its very common that people dont since it can be hard to prove alot of times.

Answer 9

of coarse you have to... and why are you asking US at Yahoo Answers? go to irs.gov, buy taxcut, or get an accountant who can help ya out.

Answer 10

no they didnt ask me for mine, I had no problems