Does anyone know if I will be receiving any tax returns?

Question

I own a duplex and each one is converted into 2 units. In other words, I rent out 4 small apartment units. I receive $825 per unit a month but don't currently work. The mortgage payment is $3325 a month which means I don't make any profit on the mortgage. I recently paid about $7000 dollars for the annual taxes. Will I be receiving any tax returns?

Answer 1

Without you working and paying any taxes into the system there is nothing to return. Property taxes are deductable, but nor refundable.

You will not receive a return because you paid nothing in to return to you.

Answer 2

You don't "receive" tax returns. You file them. Maybe you're asking about a refund?

Whether you receive a refund or not depends upon your tax liability and how much you have paid in through estimated payments and payroll withholdings. If you have no other income than this property then you almost certainly haven't paid in any estimated taxes so therefore won't be seeing any refund.

Your property will probably show a loss for tax purposes. However your gross rents mean that you must file a return as they exceed the filing requirement amount for all filing statuses. The mortgage interest, property taxes, maintenance and repairs, utilities, depreciation, etc. will all reduce your net rental income probably to less than $0. Up to $25,000 of that tax loss could be used to offset other income but if this is your only income then you'll owe no tax on it. And since you haven't paid anything in, there's nothing to be refunded to you.

Answer 3

Whether you receive tax returns in the mail or not...you still need to file. If you filed last year and are at the same address, you should receive tax forms in the mail this year.

Answer 4

You need to file to see if you will get anything back. I really suggest you enlist a tax specialist to do this for you like H & R Block.