2007-04-02 05:32:41 · 7 answers · asked by lucas07 1 in Business & Finance ➔ Taxes ➔ United States
Reportable to who? The mortgage company doesn't care as long as you're making the payments. You can report it as a loss on your income taxes.
2007-04-02 05:37:06 · answer #1 · answered by Anonymous · 0⤊ 3⤋
You must report all rental income. If you are not renting it to her for the local fair market rental value you will be limited on the deductibility of any expenses against the rental income.
The mortgage payment does not factor into the equation. Many rentals are rented for less than the mortgage payment but at the local fair market rental value.
2007-04-02 13:26:29 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 1⤋
If the rent that she is paying you is less than the normal rent for the area, you have a "Not for Profit Rental".
In this case, both the rent and the expenses would go on Schedule E but you can not show a loss. In most cases, not for profit rentals net out to zero. No income....no deduction.
2007-04-02 12:58:11 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
If she is paying fair market value rent you can report it as income and deduct the expenses and depreciation of the rental property. Otherwise you must report the rent and can take deductions up to the amount of the rent. The third option would be to treat the income as a gift and not report it.
2007-04-02 12:38:15 · answer #4 · answered by Scotty 4 · 1⤊ 1⤋
Whatever rental income you have is reportable, but since the amount she pays to you is less than your expenses for renting the house, you actually seem to have a loss which will go against any tax you may owe.
good luck & bless
2007-04-02 12:36:45 · answer #5 · answered by Wood Smoke ~ Free2Bme! 6 · 2⤊ 1⤋
Regardless of whether or not she pays you less than what the mortgage is, ANY AND ALL income you receive from your rental properties, is reportable.
2007-04-02 12:36:42 · answer #6 · answered by Barry 6 · 1⤊ 0⤋
Yes, you must generally report all income received as rent; however, there are special rules to what rental expenses you can deduct if a property is not rented for profit. See http://www.irs.gov/pub/irs-pdf/p527.pdf for the rules related to rental properties.
2007-04-02 12:54:54 · answer #7 · answered by caldwemj 3 · 1⤊ 0⤋