If I own a rental property and I purchase home improvement supplies (drywall, insulation, flooring, lighting etc...) for that rental property, can I claim that at the end of the year in my taxes. Are there any stipulations as to how long you have to own the property and be renting it out and how much you can spend or claim - are there any caps? How much could I expect to be reimbursed at the end of the year - I heard 40% - Is that true?
2007-05-30 06:42:34 · 5 answers · asked by Honey22 2 in Business & Finance ➔ Renting & Real Estate
Yes, you can write it off. You'll not be actually "reimbursed." It's like with any other deductions, it will lower your your taxable income and you'll have to pay less in taxes. How much? Depends on you tax bracket. Lets say you make $100,000 renting your properties and you write off $2,000 in improvements. It will not help you any.
If you make $100,000 and manage legally write off $50,000 it will help.
These are just extremely simplified examples, to give you an idea.
And, of course, if you own rental property, it's not a good idea at all to do your taxes yourself. Pay a tax accountant a couple of hundred dollars and get it done by a professional.
2007-05-30 12:59:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You may claim the full value of such expenditures as operating expenses for your rental property. These expenditures are not claimed directly against your income tax, but are used to reduce your profit from this particular venture.
2007-05-30 06:50:08 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Yes, you can use those purchases as a tax deduction. You should contact a tax specialist/accountant for information on all of the specifics. Normally they will give you basic information over the phone to put you on the right track. I would say that it would be wise to use them to prepare your taxes at the end of the year as well.
2007-05-30 06:54:18 · answer #3 · answered by Lady 2 · 0⤊ 0⤋
those 2 traces truly stand out to me: "we expect of we are in a position to purchase for $65K" . Are the two certainly one of you signing for this domicile so as which you're mutually responsible for it truly is maintenance, maintenance, money etc and the two entitled to apply it truly is earnings or fairness as you spot extra healthful? "i'm going to purely help with the down fee and month-to-month mortgage." purely? Are the two certainly one of you putting in 50% of the downpayment and paying 50% of the interior maximum loan mutually? If the buddy is going to stay there, what would be their contribution to this organization? Will they cope with the valuables on account that they are going to be onsite? in case you have a falling out will they flow from the valuables on account that they are going to evaluate themselves area proprietor? this might nicely be a large step for you and it might desire to be financially invaluable i only can no longer tell from what you have pronounced why you like an important different? You qualify on your man or woman to try this so what's the point for related to somebody else who curiously can't deliver the comparable point of autonomy and stability to the table? Is your buddy going to pay you for using this assets as a conventional place of abode? i might in straight forward terms do this deal in case you have been going to do it on your man or woman. while you're leary of dealing with the valuables get a assets supervisor to deal with that for you. tell your buddy your fiance is somewhat against the belief so which you will positioned it on carry for now (in contracts it truly is ordinary as deferring to a greater authority). you need to purchase the domicile, only positioned a assets supervisor between you and the renters so noone who's renting will understand you are the owner. as quickly as you have bought the valuables, have an lawyer flow the owner call to an LLC which would be set up for you by skill of the genuine assets lawyer. Have the comparable lawyer evaluation the documents until now you purchase to boot. long tale short, make a earnings and save a frienship.
2016-10-09 03:33:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Thats close, there is s free couculation form at IRS.gov just go there and ask for it by cclicking the boxes and they will mail the forms out for free
2007-05-30 06:53:32 · answer #5 · answered by jimmy b 3 · 0⤊ 0⤋
Rent To Own Home - http://RentToOwnHome.uzaev.com/?myeJ
2016-07-13 02:55:48 · answer #6 · answered by ? 3 · 0⤊ 0⤋