We will soon close on our new home.
2007-10-19 10:44:14 · 2 answers · asked by julio_slsc 4 in Business & Finance ➔ Taxes ➔ United States
You really don't need to do anyting as far as taxes are concerned. File Schedule E with your Form 1040 return to account for the rental income and expenses. An LLC is a disregarded entity so it has on affect on your tax returns.
Keep accurate records of the purchase cost, improvements and all expenses. Keep in mind that you will have a depreciation recapture event when you sell the condo so make SURE that you claim the depreciation expense as it will be recaptured whether you claim the expense or not.
2007-10-19 10:50:51 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
in case you meet the holding era of the condominium which i think is eighteen months you should transform the residing house on your regularly occurring place of residing without prompt tax effect. once you bought the valuables your foundation may well be that of the condominium to contain any earnings that ought to be recaptured. the regularly occurring place of residing exclusion while suitable may well be proportionate for the time it became a condominium and your regularly occurring place of residing. the main suitable subject to do is stay interior the residing house till you die and could it on your babies. They get a stepped up foundation and the earnings disappears.
2016-10-13 05:27:09 · answer #2 · answered by ? 4 · 0⤊ 0⤋