I am planning to rent my townhouse and move to another city in the same state.
If i rent in the new city can o claim my rent as an expense for doing business....since i am technically in the renting business.
2007-10-08 05:26:20 · 5 answers · asked by znafar 1 in Business & Finance ➔ Taxes ➔ United States
Uh, no. Nice try.
And don't forget to claim the money you get from renting the townhouse as income.
2007-10-08 05:31:56 · answer #1 · answered by lunatic 7 · 1⤊ 0⤋
Read IRS pub 463. 1st, the assignment must have been temporary and less than one year. 2nd, you must reduce the food claim by 50% and then subtract out what the per diem already paid on line 7 of the 2106. (Note your employer was supposed to report the per diems in box 12 with a code of L.) THEN you further reduce the expenses by 2% of your AGI and add them to schedule A (and the AMT form). If you can itemize, it may reduce your tax bill. 3rd, even though you were paid on per diem, you must have actual receipts for the rent, mileage logs for the car, proof that the entertainment expense met a business purpose.
2016-05-18 23:53:55 · answer #2 · answered by ? 3 · 0⤊ 0⤋
No, it's your residence. If you kept your townhome and did not rent it out, that remains your residence and then any rents you incur as a part of doing business become a business-related expense. But since you are renting that out and moving, that argument goes out the window.
2007-10-08 05:30:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, but you can claim your expenses for the townhouse (advertising for renters, real estate taxes, repairs, etc.) against the rent that you receive.
2007-10-08 06:30:26 · answer #4 · answered by StephenWeinstein 7 · 1⤊ 0⤋
No. The place in the new city is your personal residence, not deductible.
2007-10-08 06:04:32 · answer #5 · answered by Judy 7 · 1⤊ 0⤋