TAXMAN Posted February 11, 2008 Report Share Posted February 11, 2008 hello all. Question is I have TP with rental to relative at 75% of market value. does show a profit even if I take all expenses. Can I do this on Schedule E? Or do I get none of the expences and show all the rent. The way we cal 75% was TP has 4 other rentals to non relatives. What does this board think? Many thanks to all. Quote Link to comment Share on other sites More sharing options...
ed_accountant Posted February 12, 2008 Report Share Posted February 12, 2008 Report on Schedule E. Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 12, 2008 Report Share Posted February 12, 2008 Report on Schedule E. Report on schedule, take expenses and depreciation. Quote Link to comment Share on other sites More sharing options...
lbbwest Posted February 12, 2008 Report Share Posted February 12, 2008 hello all. Question is I have TP with rental to relative at 75% of market value. does show a profit even if I take all expenses. Can I do this on Schedule E? Or do I get none of the expences and show all the rent. The way we cal 75% was TP has 4 other rentals to non relatives. What does this board think? Many thanks to all. Per IRS "Frequently Asked Questions" I am renting a house to my son and daughter-in-law. Can I claim rental expenses? In general, if you receive income from the rental of a dwelling unit, such as a house, apartment, or duplex, there are certain expenses you may deduct. Besides knowing which expenses may be deductible, it is important to understand potential limitations on the amounts of rental expenses that may be deducted in a tax year. There are several types of limitations that may apply. ... Not for profit activities: If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. Any rental expenses in excess of rental income cannot be carried forward to the next year. Refer to Publication 527, Residential Rental Property and Publication 535 , Business Expenses . Rental of a dwelling unit: The tax treatment of rental income and expenses for a dwelling unit that you also use for personal purposes (renting to a relative may be considered personal use even if they are paying you rent) depends on whether you use it as a home. Refer to Publication 527, Residential Rental Property . Expenses in connection with rental of a dwelling unit for less than 15 days per year . Refer to Publication 527, Residential Rental Property . Quote Link to comment Share on other sites More sharing options...
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