Casualty on Rental Property

by Roy James
(Newark)

Casualty on Rental Property

My rental property was completely destroyed by fire. My insurance company denied the claim, so when I filed my tax return, I reported a loss of $30,000 on form 4684, it was calculated as follows:

Adjusted basis $30,000 less $0.00 salvage value(property was fully depreciated)

Was that the correct way?

In the next year I won a verdict in court against the ins co and received a net amount $67,000($100,000 less attorney fee and tenant settlement)

I rebuilt the property at a cost of $325,000.
Do I attach a statement to my tax return stating that my new basis is $288,000($325,000 less $37,000($67,000 less $30,000 original basis)

Do I have to amend my previous tax return since I now received an insurance reimbursement?

Computer Rental

I flexirent a laptop for work I use it 90% for work. Where do I claim this on my tax return.

Thanks Terry

Conversion of Personal to Rental Property

by John
(San Francisco, CA, USA)

Can you tell me how best to handle this situation? At the beginning of 2010 I bought a new home - and rather than sell my old home in this terrible market I am trying to hold on to it and rent it. The basic numbers are:

Jan/2005: Purchased 1st home for personal use at a price of $1,225,000,

Jan/2006: improvements 1st home of $25,000. Thus a cost basis of $1,250,000.

Jan/2010: Bought new home for personal use and moved in

Jan/2010: Conversion of 1st home to Rental Property, FMV at this time $1,000,000 - $1,100,000 (there are various studies I can use to justify a price at the lower or higher end of this range).

Feb/2010: Improvements to 1st home (now rental) since conversion: $40,000. New basis FMV + Improvements since conversion = $1,040,000 - $1,140,000.

2010: Rental losses $25,000 (income $35,000, expenses $60,000), not deductible because personal income is greater than $200,000

Future: Expect to continue rental loses for the foreseeable future

Questions:
1) I understand if I sell the first home for a loss I use the new basis which is lower than the original cost basis. How do I recoup the difference between the original cost basis and the new basis?
2) Is there a tax advantage to use the lower or higher new FMV estimate (I can justify either $1,000,000 or $1,100,000 as the post conversion starting basis) which one would be better to use?
3) Since I lived in the house for 5 years from 2005-2010, is there a reason I should sell the house before 2013 (so as to still have the ability to say I lived in it for 2 of the proceeding 5 years) ?
4) Because of my income I am not able to deduct the rental losses – am I able to recoup these loses somehow in the basis when I do sell it?
5) Any other ways to determine if I should sell now before incurring more rental loses, sell in the next 2 years before my live in for 2 of the last 5 years runs out, or hold on to it for as long as possible when hopefully I end up turning a profit?

Daughter's Boyfriend Living Here Free of Rent

My daughter's boyfriend lived here for the past year free of rent he suffers from bipolar depression can I claim him as a dependent

Free Rent To Advertisers On Billboard Deductable?

by Reid
(Minnneapolis, MN)

I bought a highway billboard this year and as an incentive to get nine advertisers to rent it, I gave them free rent for their first month (the normal monthly fee is $75.00 thereafter). Can I deduct the free first months rent I gave my advertisers as an expense (i.e., business gift or ...)?

Thanks -

Foreclosed Rental Property

by Jennifer
(USA)

Hi, we had a rental property foreclosed on 12/23/09. Never heard or received anything from the lender. I am now told we should have received a 1099-A or C by 01/31/10 to file with our 2009. Question is now...how or what do I file for 09 property in 2010? Thanks in advance.

Non-Resident State Returns for Rental Income?

by Elizabeth
(Ft. Bragg, NC)

We are military, stationed in NC. Our home of record is TN, which doesn't require a state return. We have a property in AZ, which we rented, but didn't make any money on. (In fact, we lost $4800 this year). Do I need to file a state return for AZ to report this?
Thanks!

Rent

I work for free rent. Can i claim that rent on my income tax?

Rent Paid

Rent Paid

If you paid rent to a landlord can you use that when doing taxes?

Rent Paid For College

My son is 25 years old , attends college and works part time in another state. He does not earn enough to pay has 500.00 rent and cell bill monthly, I pay the rent and cell bill. He does not qualify as a dependent since he makes over 3,700 a year. Am I able to receive anything back for him ?

Rent Percentage

by Sher
(Morrisburg, Ont. Canada)

I have a question about the rent percentage that is deductible. What percentage of your rent can you claim on your Canadian income tax return?

Rental Expense

I rented my home for the first time in 2010.
In preparation for renting, I had a new roof
put on in April, 2010. My renters paid their
first months rent in November, 2010. Is the
cost of the new roof a maintenance writeoff
for 2010 ???

Rental Income

by Louise
(Philadelphia PA)

I live with my gay partner in Phila, and the house is in my name on the mortgage. She pays me a portion to offset the expense, there is no income, these are shared expenses.

Can you confirm that this is not taxable income, thanks

Rental Income?

My sister-in-law recently moved in with us and is paying us "rent." Do we need to claim this to be income on our taxes?

Rental Property

Do I have to put the price of the property in capital costs every year or just the year I bought the property?

Rental Property

by Samuel
(Hawaii)

My fiance & I purchased a house together. The loan is in both names. The house is a rental property right now.

I am paying the mortgage. I collect the rent. We split some repair & improvement costs, altho I've paid about 80%. She is paying a small part of the loan through a home equity line.

Am I able to claim all expenses & income related to the rental if she is agreeable?

Thank you

Rental Property

(Salem, Oregon)

IRS is auditing us and my auditer told me that if I rent off the expenses we do ourself we need to include that in our income. Maintenance, management, repairs, etc. Could you tell me where I look in their publications that says that If I write those off I need to include in our income. Also I need more info on what I can write off and how much of those expenses. So far everything i find is very vague.

Rental Property Short Sale Question

I have a question regarding a rental short sale. here are the numbers

Cost price - 407,000

Mortgage Balance - 405,000

Short Sale Price - 277,000


Depreciation Taken - 20,000

Prior year passive losses - $50,000

Will I have a tax liability for the cancellation of Debt? Or can it be offset with losses from the property?

Thanks

Renting a Bedroom

by Ann
(Fort Myers, Florida)

What form do you fill out when doing your Federal Taxes in Florida when you occasionally rent our a bedroom in your home?

Renting Rooms to Family

by George
(San Diego, CA)

Is rent received from family, for rooms rented to them, in your main home reportable to the IRS?

Social Service and Rental Income

Are the two items taxable?

Hello,

Yes the two can be taxible, unless the amount of your deductions and credits reduce your taxable income to zero.

Tax Break/Cut/Respite For Losses in Rental Property

by Alex
(San Jose, California)

I have a rental property that I purchased in 2005 for 250K, and now is valued at 75K and gives me sporadic rent. How do I get a tax break from this property (either right now, or when I sell it).

I don't own any other property (I stay in a rented apartment), I don't own any business and my research on the web tells me that:
(a) I can't use losses from this property (either through yearly losses in earning minus expenditure , or losses when I sell the property) to negate the profit I make through stocks.
(b) even if I start owning a home, I can't use losses from the rental property to reduce my taxes.

Under these circumstances, how do I make best use of the losses that I will make when I sell this home? Can it be used ONLY to negate profits made on sale of another property?
I wish there was another "creative" way!

Tax Deductions For Out-of-State Rental

by Cas
(Sonoma County California)

Hi. We are looking to buy a home in Idaho (we live in CA) and are wondering what kind of tax deductions we get if we rent out the property instead of live in it? Someone told us we wouldn't get much since it's not our primary residence. We do not want to buy in CA, since we plan to retire to the property we buy in Idaho in a few years. Thanks for your help.
Cas

Unemployed But Own Rental

by cc

Unemployed But Own Rental

Hello, I was unemployed for 2010 and am not filing any income. My residency has been paid for by my partner, so there is nothing to claim in California.

I however, do own a home in TN that has a mortgage interest recieved of 6558.93 and a property tax of 2603.07.

Do I qualify for a return on this house. It is a rental property, my renters basically pay the mortgage, so there is nothing I can claim for income there either...HELP!

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