If you go from renting your own home to having a property manager rent it , what changes on income tax form ?

Question

We lost a long term renter, so we fixed up the property and handed the management over to a property manager. We had to spend a lot on remodeling, but now the income has doubled, even including the property manager's share. What forms or changes need to be filled out when I do my income tax? It had previously been our primary residence that we were renting while abroad, and would be still, if we ever return to that area.

Answer 1

If you were previously reporting your rental income/loss on a schedule E (Supplemental Income from rental real estate, royalties, yadda, yadda) as part of your personal income tax return, there would be no changes. The fees paid to your property management company would be reported on line 11 (management fees 2006 form) as an expense and deducted from your rental income.

Answer 2

2

Answer 3

Nothing. As long as you are actively participating in the rental of the property (visit it - fix it up, etc.)
The plus is that you know can write off the cost of the management fees as an expense against the income from the property.
I know we have rental property that is managed by a property management company. The property is out of state so it works well. We do visit it once or twice a year ~ and another plus, we get to write off those trips too.

Answer 4

Rent To Own Home - http://RentToOwnHome.uzaev.com/?HHEQ