I would like to rent out my primary residence and rent a place closer to work. Can I deduct my new rent?

Question

I would like to rent out my primary residence and rent a place closer to work. Can I deduct the second rental cost from the income that i need to declare on the first?

Answer 1

No, you cannot deduct the rental cost from the income. You can deduct expenses that are related to your former primary residence that is now a rental. You would report the income and expenses on Schedule E. If you pay a mortgage on the now rental property you can deduct the mortgage interest on the schedule E, also Real Estate taxes, repairs, utilities, cleaning/maintenance, supplies, etc. In addition to those expenses, you can also write off over time, through depreciation the cost of purchasing the property originally, as well as any improvements you have put into the property. With depreciating the original purchase of the property you should allocate the cost between land and the building. The building you can depreciate, but not the land. Your tax bill, if it gives a breakdown between the land value and the building value would be a good start for allocating your original cost between land and building.

Answer 2

definite, you could employ something you own. In Michigan, we've whats observed as "abode Exemption Tax". it really is the position your regularly happening position of abode is in simple terms taxed at a million/2 the fairly value. Therfore in case you rented it, the domicile could now no longer qualify for the exemption. this implies it may have large tax implications. social gathering: Tax on your position is 6,000.00. abode it (regularly happening position of abode) and pay 3,000.00. If this were no longer your regularly happening position of abode, and also you paid the completed 6,000, how lengthy could it take you to make up the adaptation renting it, as adversarial to preserving it. in case you've been renting it for a million,000 a month, it may take 3 months to interrupt even on the tax challenge.

Answer 3

No. You have to live SOMEplace. Your rent is a personal expense, and isn't deductable.

Answer 4

No, because you don't own it.

If you set yourself up as a company, then you would be able to deduct both.