2007-03-19 18:03:19 · 4 answers · asked by Suzy G 1 in Business & Finance ➔ Renting & Real Estate
You can do both. You deduct depreciation, interest on the mortgage, expenses and taxes.
...and only count 75% of the income too by the way which is nice
2007-03-19 19:04:58 · answer #1 · answered by Tadow 4 · 0⤊ 0⤋
If you are not living in the home yourself and it is an investment property you need to fill out the appropriate tax schedual. The interest and deduction amounts are different on rental property.
You can go to IRS.Gov and download the sample scheduals you need. You should have a professional tax person help you with these types of taxes the first year or so and pay attention to what they do. Then when you become savy or comfortable try them yourself and have them looked over the following year to be sure. Finally if you really want to then try them on your own. I wouldn't but go for it. Besides the tax prep fee is deductible the following year.
2007-03-19 18:18:25 · answer #2 · answered by mrindianajonesprm 2 · 0⤊ 0⤋
You can deduct the interest you are paying on mortgage payments and you should get a statement from the mortgage company stating that amount for tax purposes. If you did not get this, call the company and ask for the total interest paid in 2006.
2007-03-19 18:07:55 · answer #3 · answered by nesmith52 5 · 0⤊ 0⤋
You do get to claim interest paid on property you own but not on property you rent. The owner enjoys that privilege.
2007-03-19 18:08:32 · answer #4 · answered by Chris P 3 · 0⤊ 0⤋