Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-04-2012, 02:52 PM
Junior Member
 
Join Date: Feb 2012
Posts: 1
Rental Property or hard lesson learned?

I got divorced in 2011. I owned a home in Tennessee which my ex continued to live in on a month to month basis rental. We did not have a rental agreement other than what was stated in our divorce agreement. I moved to Ohio and have been renting a residence of my own. She was not on the loan for this property. She moved out in July 2011 leaving a giant mess and several thousand dollars worth of cleanup and repair costs. I have been unable to sell or rent this property since she moved out in July. Am I able to claim this property as a rental as well as the loss of funds ($800 a month for the mortgage since July and the clean up costs, as well as cost of travel?) I have had to travel to Tennesee 4 times due to this property since then. I have not lived there in over 2 years and have had my own residence in Ohio. I hope this makes sense. Please be kind as I'm not well versed in such matters.


Last edited by confusedinohio : 02-04-2012 at 02:54 PM.


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 02-04-2012, 05:57 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“ Am I able to claim this property as a rental as well as the loss of funds ($800 a month for the mortgage since July and the clean up costs, as well as cost of travel?) I have had to travel to Tennesee 4 times due to this property since then.”---->So, you didn’t have a rental agreement other than what was stated in your divorce agreement; leases and rental agreements should always be in writing, even though most states(you need to check it with your state) enforce oral/spoken agreements for a certain period. While oral agreements may seem easy and informal, they often lead to disputes.You can deduct your rental property expenses,i.e., traveling expenses to visit the property, or clean costs, repairs, r/e taxes or etc. You'll report any income and expenses from your rental property on Schedule E. You'll also file a Form 4562 so that you can claim a depreciation deduction on your rental property. However, you need to recapture unrecaptured deprec( it is tax on capital gains due to accumulated depreciation)that is subject to 25% when you dispose of your rental property.As long as you sell your rental pty at aloss, no depr recap. When your rental pty is subsequently sold, the gain (if there is gain generated, recognized, I mean)on the sale will be higher since it's basis is now lower. How the gain is treated depends on the type of asset.Depreciation recapture can cause a significant tax impact for people who are selling residential rental properties. Part of the gain will be taxed as a capital gain and may qualify for the maximum 15% rate on long-term gains. The part of the gain that is related to depreciation, however, will be taxed at a maximum 25% rate.
Even when a rental property is vacant, a landlord remains able to claim deductions despite the loss of rental income.
“ I have not lived there in over 2 years and have had my own residence in Ohio.”--->As described above.



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
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
Property Rental conversion to Primary Residence and Back to Rental Property jgmeyer Rental Real-Estate 1 01-03-2011 08:47 AM
NJ rental property tax deduction vik3001 Rental Real-Estate 0 04-08-2009 11:16 PM
Deduction of property used in rental property mhrobinson3 Rental Real-Estate 4 01-20-2009 11:57 AM
Write Off New Rental Property in NYC???? fengshui_9 Sole-Proprietorship 1 10-02-2008 11:04 PM

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
 
 
 

» Recent Tax Q&A
No Threads to Display.