If I rent my home for 1000 less per month than my mortgage would I recieve tax benefits to reduce the loss?

Asked by Eric, Sacramento, CA Fri Jul 27, 2007

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Bruce Lynn, Agent, Coppell, TX
Fri Jul 27, 2007
This is really a CPA or tax advisor question. You need to check with them to make sure. It could be, but I think there is a limit of $25,000 or something like that per year depending on how much money you make. Even if you can't do it year by year, I believe the loses can be credited against capital gains when you sell your home. You might also want to look at the instructions for Schedule E from the IRS. That may give you some guidence
1 vote
J Lo, Home Buyer, California Glory, Brentwood, CA
Fri Jul 27, 2007
The tax genie says that you really need to talk to a CPA - because there are WAY too many factors that affect a $12k loss in one year.

Why would you be looking to lose on an investment anyway? A loss is a loss - even if you get a tax break... unless you make a ga-zillion dollars anyway and what you're really asking for is a tax "shelter" investment.... and rental income/loss doesn't really qualify.
0 votes
Herman Chang, Agent, Palm Beach Gardens, FL
Fri Jul 27, 2007
You will receive a tax benefit if the interest, real estate taxes and expenses add up to more than the annual rent amount. Consult with your tax preparer.
0 votes
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