Tax deduction for cost of house bought for rental
Lars
4 years ago
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2013 New Home Tax Credits/Deductions
Comments (2)I am also building a new home and the only tax credit that I am aware of (short of turbine power) is the 30% credit for geothermal installation. My electric Co-Op also offers $750.00 a ton credit for geothermal so you might want to check with your utility company to see if they have any rebates. The credits on geothermal make it cost effective for my installation but I wish there was a credit for foam insulation 'cause I have a hard time justifying that cost. Here is a link that might be useful: Energy Star...See MoreQuestion about home office and tax deductions
Comments (8)"I used to work from home but on the advice of our CPA did not claim a deduction for my office. The square footage / usage figures were almost insignificant as a percentage of the total, and he said---which I'm sure you already know--- that those deductions are red flags for IRS auditors." My former CPA gave me the exact same advice, so for many years, I didn't. This year, I decided to see how big a deduction I was giving up and how much of a tax impact it had -- NOT enough! So I took it out, even though I'm clearly entitled to claim it....See MoreRental Deduction info needed...
Comments (11)I have read this in several NOLO books. Remember that this is my first rental property and it needs some work done to it to be considered available to rent. Here is some of what they say... "You can deduct up to $5000 of your start-up expenses the first year that you're in business. Start up expenses are any expense you incur before offering your property for rent, so long as they're related to getting your business up and running. Once the property is posted as available to rent, then all your expenses are cosidered operating expenses. Start-up expenses can include "repairs to get the property ready to rent,office supplies, advertising and educational how-to books, etc." "A special tax rule allows you to deduct up to $5000 in start up expenses the first year you are in business, and then deduct the remainder, if any,in equal amounts over the next 15 years. The date you offer your first property for rent is considered the date your business starts.".. NOLO Evert Landlords Tax Deduction Guide ....See MoreIs It Time to End the Mortgage Tax Deduction?
Comments (35)"herwise, they are just creating a cost with no clear benefit to consumers. A few select groups might benefit, but overall, we suffer." Who defines "consumers"? The largest benefit of the mortgage deduction still goes to the middle class. The bottom edge may not get a large benefit, and the upper edge may not 'need' the benefit. These are artifacts of how the deduction plasy ageist the standard deduction. At the low end the standard deduction is better than a low deduction, at the high end the deduction has less import since other methods of reducing tax liability are available. If a change in the overall preference for ownership over renting is the goal, that would create different incentives (and tax rules to drive the goal)....See MoreLars
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