Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-15-2017, 04:13 PM
Junior Member
 
Join Date: Mar 2017
Posts: 1
Rental cum personal property

I am living in two rooms and also renting rest of the house i.e. 4bd rooms. How do I file my taxes... is it rental property or personal property. How do I depreciate the property if I am using portion of it. Is there a special worksheet to calculate my share expenses to show IRS. Also my personal address and rental property address will be same, how do I inform IRS I am using portion of my rental house for myself.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-15-2017, 11:20 PM
Moderator
 
Join Date: Oct 2010
Posts: 4,838
I am living in two rooms and also renting rest of the house i.e. 4bd rooms. How do I file my taxes...=======> you act as a landlord, then the IRS considers any revenue your activities generate as taxable income, and renting out a portion of your primary residence is treated the same way. You?ll need to treat the portion of your home that?s used by renters as an individual rental property, separate from your residence. While you?ll need to perform some extra paperwork in this situation, it allows you to deduct expenses from your rental activity, which reduces the taxable income the rented room generates. you need to report your rental income and deductible rent related expenses on SCh E of 1040


is it rental property or personal property. =====>rental pty since the rooms are now rented out While the rented room is a separate rental entity in the eyes of the IRS, it shares many expenses with your personal home, such as mortgage payments and utility bills. The IRS allows you to divide expenses between the rental property and the part used for your residence using any reasonable method you choose. Many landlords use the proportion of total bedrooms in the home that are rented or the proportion of square feet rented out to split expenses. For example, if you own a 4-bedroom home and rent one room out, you can claim 25 % of shared expenses as biz expenses. In addition to shared expenses, you can also deduct any direct expenses associated with renting the room from rental income. These expenses include advertising the room, the cost of credit checks you incur when screening tenants and charges related to cleaning or changing locks between tenants. If you?re not renting the room for a profit -- merely trying to cover mortgage and upkeep costs -- you can claim these expenses, but your expenses can?t be more than rent revenue, and you can?t carry losses forward into future tax years.


How do I depreciate the property if I am using portion of it.=======> When you rent a room in your primary home, you can deduct the depreciation of the rented area from your taxable income. You can get the area of the room in square feet by measuring the room's length and width in feet and multiplying both figures. Dividing the area of the room by the total area of your house would give you the percentage of your property that can be claimed as tax-deductible depreciation. For example, a 10-foot-long, 20-foot-wide room would have a total area of 200 square feet. If your home has a total area of 800 square feet, the percentage of depreciation that you can claim is 25 percent (200 square feet divided by 800

Is there a special worksheet to calculate my share expenses to show IRS. Also my personal address and rental property address will be same, how do I inform IRS I am using portion of my rental house for myself=>> as said you need to use sch E of 1040 to report your rental income and expenses on your 1040.you my use tax return software that?d calculate your net taxable income , accumulated depre or etc
when you sell it later then youneed too recapture the accumulated depre as ordinary incoem on your return



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Income exceeds $150,000. Why doesn't Turbotax offset passive losses from one rental property against passive income from second rental property? aboniadi Rental Real-Estate 4 03-17-2014 02:15 AM
Depreciation of Personal Property after rental use skibo84 Depreciation 1 08-11-2012 04:39 AM
Can Suspended Losses from Rental Property converted to Personal Residence be released upon sale of another rental property? mountainaire Rental Real-Estate 1 04-05-2011 03:59 AM
Sale of Rental property formerly used as personal residence Kato Rental Real-Estate 2 03-19-2011 03:02 AM
Property Rental conversion to Primary Residence and Back to Rental Property jgmeyer Rental Real-Estate 1 01-03-2011 08:47 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning