The house had been rented for the previous 4 years, but with the market having changed, we have not been able to get the property rented. I am confused when reading the IRS publications. If there is a tax expert that can direct me to the correct information, it would be greatly appreciated.
2007-12-17 18:14:41 · 7 answers · asked by jlrjvr 2 in Business & Finance ➔ Taxes ➔ United States
Read
Publication 527: Residential Rental Property; Limits on Rental Losses
www.irs.gov
2007-12-17 20:11:50 · answer #1 · answered by MukatA 6 · 1⤊ 0⤋
To reword some of the correct responses above, the property is treated as an active rental as long as it is available for rent and you are taking reasonable steps to find a tennant.
2007-12-18 02:38:38 · answer #2 · answered by taxreff 7 · 0⤊ 0⤋
Yes, you may claim the rental as you have previously claimed it. However, be prepared to show the IRS some evidence that you made reasonable efforts to procure a renter which were not successful.
2007-12-18 00:12:31 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
As long as you are actively seeking to rent the unit (or have hired someone to do that) you can still deduct maintenance expenses, cost of advertising, and you MUST depreciate the property.
If you are not actively seeking a renter, then you have a passive loss and all new rules apply.
2007-12-17 18:20:06 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I think so long as you actively tried to find tenants you can deduct related expenses and declare a net rental loss on your schedule E
2007-12-18 08:23:34 · answer #5 · answered by Anonymous · 0⤊ 0⤋
And, if your income is too high, you will have to wait until a later year to actually use the loss.
2007-12-18 00:58:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You may be able to write it off as a loss...
2007-12-17 18:18:37 · answer #7 · answered by suigeneris-impetus 6 · 0⤊ 0⤋