If you have a mortgage on the house, can the principal, insurance, and taxes be deductable.
2007-12-16 20:50:40 · 3 answers · asked by rocky 2 in Business & Finance ➔ Renting & Real Estate
Right along with the income from the rental property on Sch E of the Federal 1040.
Exception, no on the principal.
Go to http://www.irs.gov and type rental property in the search box.
2007-12-16 22:03:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You may deduct property taxes, insurance, and interest on the mortgage as business expenses. Principal payments are not deductible, however.
2007-12-16 21:17:02 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
If you own a rental home, you may be required to pay taxes on income that you receive from the property.
Tips & Warnings
Consult IRS Publication 527, Residential Rental Property, for complete details about reporting rental property income and expenses.
If your rental expenses are more than your rental income, be aware that your losses may be limited to $25,000 if your adjusted gross income is less than $100,000 for the tax year.
Be aware of different tax rules and regulations regarding second homes and vacation homes, especially if you occupied the property during the tax year.
2007-12-16 21:44:37 · answer #3 · answered by Anonymous · 0⤊ 1⤋