Taxes- can you deduct your rent?
Yes, if you're filing HEAD OF HOUSE HOLD. The IRS is nothing to take chances on, so if you have any questions, you should direct them to: WWW.IRS.GOV or OR CONTACT THEM BY CALLING:(866)583-3251.
Are termite contracts deductible on rental properties?
It is 100% deductible. I think I would classify it as an "other expense;" Ttax is meant for the country as a whole and termites aren't much of an issue for most of the country. Almost anything is deductible for rental income. Anything reasonable and necessary for the operation of a trade or business is deductible as such, that includes rental property. The greyish areas are the home office which is necessary for managing the rental(s) - just how much was actually devoted to the business? Repairs and Maintenance (or was it actually an improvement?) Business or personal (just how much of that trip to Hawaii was to manage that condo?)
Can you claim rent as a legitimate deduction on your personal income tax return?
If the place you rent is used for business and/or rental purposes, you can deduct some or all of the rent. If the rent is just for your personal residence, then it is generally not deductible for tax purposes. If you rent in California, you may qualify for the renter's tax credit on your CA income tax return.
Home Office Deduction Tax Question?
A home office deduction is available to persons who use their home office in connection with a trade or business. Your rental income is not defined as a trade or business by the IRS. Rental income is classified as passive income, which means that your rental activity is not a trade or business. Therefore, you are not allowed a home office deduction. However, on Schedule E, you can take your out of pocket expenses such as office supplies. You can also deduct equipment such as a printer, computer, fax. You can deduct a second phone line. But, you cannot deduct a portion of the operating costs of your home, or depreciate a part of your home as business property.
If you host Airbnb guests in the apartment you rent, can you deduct the cost of improvements from your rental income for tax purposes?
Probably.It would take a brave person to ever say anything for certain on tax for legal reasons.The two most likely drivers are that Airbnb is fairly new and detailed tax instructions won't be available.The next likely driver is that your taxable income isn't likely to be that large. In general you can claim reasonable business expenses. Depreciation and improvements to an asset would certainly come under that.Approving the appeal would certainly be tax deductable. However if you also benefitted from the asset personally you must make an adjustment for that.For example you rent the place commercially 36 weeks of the year, but use it yourself (or family) the rest of the time. you could only claim 3/4 of the costs of improvements for tax.Possibly a tax efficient way of doing this is creating a company specifically for the purpose of rental, this would mean any tax would be corporation and not income tax, (probably), and it would be easier to do the accounting.You would also get some benefits in limited liabilities if things went wrong. Certainly spending on assets is a valid way of reducing tax payable. You could even try to convince the authorities that rental was a "self-financing hobby", basically meaning it generates income, but isn't worth submitting detailed accounts.
What is the reason why the US taxpayers may not use rent or mortgage payments as deductions on the federal return? The IRS is now telling me I must give them money that already went toward the rent.
You asked What is the reason why the US taxpayers may not use rent or mortgage payments as deductions on the federal return? The IRS is now telling me I must give them money that already went toward the rent.In the US home ownership has been encouraged and subsidized by the Federal Income Tax for many years, a policy strongly supported by realtors and banks. The contributions these groups make is considered contributions, not bribes - I don’t think there is a difference - the expression “The best government money can buy” has become even more accurate since Jan 20, 2017.As a homeowner until the new tax law passed I was able to deduct mortgage interest and real estate taxes. The new law will reduce my deductions as I live in California, a blue state, with high home prices.OTH renters are not allowed to deduct any portion of the rent they pay.The tax laws benefits folks who own rental property and many people have created substantial wealth as a result of taking on the risks and responsibilities.
Does Nevada have renters credit?
When filing taxes this year will i also be able to submit rent receipts as well? I know in MN you could where I used to live, but I want sure if it was the same here in NV? also as a side question, where is the best affordable place to get your taxes done in Las Vegas?
Can i claim the california renter's credit if I live in my parents house?
I lived in my parent's house all year and don't write them a check for rent each month, but I pay part of the utilities and some expenses and we came to an agreement that this would be counted as rent. I file my own taxes and am not claimed as a dependent on my parent's return (I'm 24) So can i claim the california renter's credit? And if I put my parent's name on the CA renter's credit form I fill out, does that mean my parent's are earning rent income and have to report it?