We have 2 homes the 1st was our residence until approx 2 years ago. We had a tenant for 1 full year. We have since "sold" the home to an invest. co. The way it works is everything stays in our name but they basically lease to own it and receive all tax advantages etc until it sells. I'm sure I'm not explaining this well.
Anyway, my question is this..during 05/06 we had a tenant in the home and we lost money every month, when she moved out she basically destroyed the place. We lost several thousand on rental income because we could not rent out & it just sat there. She never paid for damages/fees. We only paid a couple hundred to other people, we had to do everything ourselves & buy cleaning supplies.
Should I depreciate those 2 years (I have not as yet)? How do I enter our losses since we did most of the work, not rentable & could not afford to pay someone else to do it. The home should sell in a year or 2 and be out of our name. I am using turbo tax to file. Do I amend last year?
2007-04-10 07:33:28 · 3 answers · asked by rsf 3 in Business & Finance ➔ Taxes ➔ United States
no, you will just have to reclaim the depreciation when you sell. if you haven't done so up till now,, don't
you can only use the cost of materials you used for repairs , not your own labor.
remember, if you lived in the house 2 of the five years previous to sale date you may not be paying tax on the profit of sale, but if you hold the house longer and rent it,, you will be paying capital gains on profit.
2007-04-10 07:45:13 · answer #1 · answered by Jo Blo 6 · 1⤊ 0⤋
Congratulations, you have been considered married for all of 2011. submitting as unmarried is no longer an selection. As for the condo, you probably did no longer fairly get what the preparer grow to be attempting to allow you realize. The preparer does the time table E. Your time table shows a loss. decrease than the passive loss regulations, you are able to desire to postpone claiming the loss until a three hundred and sixty 5 days you the two have passive earnings, a lots smaller AGI or sell the valuables. you do no longer lose the loss, you in simple terms can no longer use it to diminish something of your earnings suitable now. Welcome to the worldwide of phaseouts.
2016-12-08 23:23:33 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Unfortunately, you can't deduct the lost rent while it wasn't habitable, or your labor to fix it. You can deduct the out-of-pocket expenses for supplies, and amounts paid to other people.
2007-04-10 07:50:05 · answer #3 · answered by Judy 7 · 1⤊ 0⤋