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Old 12-20-2018, 06:50 AM
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new condo, still under construction, when to enter on Schedule E?

I purchased a condo which is currently under construction. It will be completed end of 2019 but I have made the first down payments in 2018 and paid the realtor fee. What year will I be able to enter this property on schedule E, U.S Tax return, as a rental business? The condo will be a rental property. Any insights are much appreciated.



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Old 12-21-2018, 03:42 AM
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============>> rent related Expenses may be deductible for periods when the property is not rented out, providing the property is genuinely available for ren on your 2018 return, yo may claim the first down payments and legal fees and other costs connected with buying the property realtor fees so I mean, you can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors, and other professionals or etc. You can deduct these fees as operating expenses as long as the fees are paid for work related to your rental activity while the property is under construction;


But rememeber: You may begin to depreciate your rental property of the condo ONLY when you place it in service for the production of income. probably on 2019 SCh E of 1040 and on your 2019 return



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Old 12-21-2018, 05:05 AM
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Your answer is extremely helpful and much appreciated! Wishing you a nice weekend and happy holidays.



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Old 12-22-2018, 02:49 AM
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Originally Posted by sungmbh View Post
Your answer is extremely helpful and much appreciated! Wishing you a nice weekend and happy holidays.
what i mean is that on your 2018 return, you may report rent related expenses on SCh E of 1040 and report it on your 1040.



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Old 12-25-2018, 01:45 AM
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note:this is not your case in 2018 however,2018 tax reform will change the way your rental income is taxed toyou, a landlord, beginning . Under current law, rental income is classified as ?passive income? and that income simply passes through to the owner?s personal tax return and they pay ordinary income tax on it. Beginning in 2018, rental income will be eligible to receive the same preferential tax treatment as the ?qualified business income for small business owners.
Starting in 2018, taxpayers with qualified business income including rental income, may be eligible to take a tax deduction up to 20% of their qualified business income. Determining whether or not you will be eligible to capture the full 20% deduction on your rental income will be based on your total taxable income for year.



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