November 22, 2016

Taxable Rental Income

If you have a rental property or rent rooms in your residence, there are a few things you should know. Here’s how to navigate taxable rental income: Rental property income includes all advance and current rental payments, as well as penalty fees, e.g., fees charged for late payments. Should a tenant cancel their lease, the money forfeited from security deposits is still rental income. You should also report any property or services you receive in lieu of rent at their fair market value. For more information about rental income, speak to a tax professional or read IRS Topic 414 – Rental Income and Expenses. Tip courtesy of IRS.gov
August 2, 2016
Tax Tip: Rules for Home Office Deductions

Tax Tips for Vacation Rentals – Financial Simple

Tax Tips for Vacation Rentals The IRS generally requires that you report all rental income on your tax return. However, if you only occasionally rent out a property for short periods of time and use it as a home for the rest of the year, you may not have to report the income. Here’s what the IRS says about vacation homes: A vacation property is defined as “a house, apartment, condominium, mobile home, boat, or similar property.” If you rent out a home for less than 15 days per year and use it as a home the rest of the time, you may not need to report the income. If your house is considered a rental property, you may deduct rental expenses related to the property from your taxes as long as they do not exceed the income received. If you also use the house as a home, you must segregate expenses accrued during the personal use period. Personal use may include use by family, friends, or anyone who pays you less than market rate in rent. For more information about tax issues around rental or vacation homes, consult a tax professional in your area or see IRS Publication 505, […]