Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-05-2013, 08:20 PM
Junior Member
 
Join Date: Feb 2013
Posts: 1
Primary residence rental

2012 was a rough year. My husband and I were both out of work and we lived off of our savings. We decided to rent out 2 bedrooms in our home to help with expenses. This is our primary residence and we did not make any kind of profit on this. Do we need to fill out a schedule E to report the income? We earned roughly 10K through this rental for 2012. Since this was our only income for 2012 do we still qualify for Earned Income Credit? Or is this type of rental considered investment income and we won't be allowed to claim the credit because it is over the $3,200 limit?



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 02-07-2013, 03:21 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“Do we need to fill out a schedule E to report the income?”=======>In genral yes; if you rent it for fewer than 15 days, then you do not need to report rental income on your return.So, you need to report your rental income/exp on Sch E of 1040. If you have any personal use of a vacation home or other dwelling unit that you rent out, you must divide your expenses between rental use and personal use. If your expenses for rental use are more than your rental income, you may not be able to deduct all of the rental expenses

“We earned roughly 10K through this rental for 2012. Since this was our only income for 2012 do we still qualify for Earned Income Credit?”===>I don’t think so; it is not being considered "earned income" for EIC or IRA purposes. Rental Real Estate Income is unearned incomeUNLESS you are r/e pro.
“ Or is this type of rental considered investment income and we won't be allowed to claim the credit because it is over the $3,200 limit?”===>as said 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
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
Primary to rental to primary to rental for Active Duty Ren77 Rental Real-Estate 2 08-06-2012 04:23 AM
Primary Residence then Rental tadelstein Homeowner Tax 8 07-25-2011 07:37 AM
Property Rental conversion to Primary Residence and Back to Rental Property jgmeyer Rental Real-Estate 1 01-03-2011 08:47 AM
deductions for rental, now primary residence askc Rental Real-Estate 1 02-15-2009 11:59 AM
Primary Residence julioseventh Homeowner Tax 0 02-12-2009 04:58 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.