One house I am living in, the other I am renting out. #1 Can the intrest be deducted on your taxes on both houses. #2 does the rent have to be recorded as income on your taxes.
2007-12-16 17:34:21 · 4 answers · asked by rocky 2 in Business & Finance ➔ Taxes ➔ United States
Yes, both sets of interest can be deducted, but in different ways.
For the house you are living in, it's an itemized deduction on a schedule A. If you don't itemize, you can't deduct it.
Yes rent has to be shown as income. You show it on schedule E, which is also where you show your expenses for that property, including interest paid.
2007-12-16 17:54:40 · answer #1 · answered by Judy 7 · 4⤊ 0⤋
1. Yes, the house you live in on schedule A if your itemized deductions exceed the standard deduction, and
2. Yes, on schedule E, but you can offset expenses, including dedpreciation, of the rental there too, so keep receipts.
Note: there are income phase-outs for both schedules, so beware!
2007-12-17 07:58:06 · answer #2 · answered by LEW 3 · 0⤊ 0⤋
1. Yes.
2. Yes.
2007-12-16 17:37:18 · answer #3 · answered by Anonymous · 2⤊ 0⤋
For the house you live in, put the interest on schedule A.
For the house you rent, put the interest on schedule E.
2007-12-16 17:40:40 · answer #4 · answered by Anonymous · 4⤊ 0⤋