Well, I am a CPA, and this is rent... - Saab General Bulletin Board - Saabnet.com
The banner above is an advertisment - if it asks you to download software, please ignore.
Site News -
3/26 M Car Covers (by State of Nine) |
12/12 Make Amazon Pay Saabnet!
[General |
Members |
C900 |
9000 |
NG900 & OG93 |
93 |
95 |
NG95 |
99 |
Sonett |
Vintage Models |
Clubs |
Other Cars |
FAQs |
Gifts |
Member Photo Galleries |
Member Directory |
Classifieds |
Manuals |
*Buddy Registry |
*Mileage Registry |
Polls |
What's New |
Raffle |
Photo of the Month |
Sponsors]
[Main General Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
Well, I am a CPA, and this is rent...
Posted by RodM (more from RodM) on Thu, 27 Sep 2012 18:21:20
In Reply to: OT: Renting a room in my house and Taxes., B Millar [Profile/Gallery]
, Thu, 27 Sep 2012 07:02:59
Members do not see ads below this line. - Help Keep This Site Online - Signup
which should be reported on Schedule E of your 1040. The good news is that you get deductions (mortgage interest, real estate taxes, depreciation, utilities) that will likely offset some or all of the income. The bad news is that this will trash your 1040 and you will likely need professional help to prepare it now, or the patience to learn TurboTax really well.
It's a more complicated situation than renting out a whole house because you are getting some personal benefit out of living there also, so you need to prorate all of your deductions, based on the square footage used exclusively by the renters (their bedrooms) vs. the square footage of the house as a whole. Also, when you eventually sell the house the deperciation you claimed will be recaptured at a tax rate of 25% (currently) regardless of the normal $250,000 exclusion of gain on your principal residence. I haven't taken the time to check but I would bet there's an IRS publication that does a pretty good job of explaining this in detail.
Rod
posted by 67.136.175...
Posts in this Thread:
- OT: Renting a room in my house and Taxes., B Millar , Thu, 27 Sep 2012 07:02:59
- Well, I am a CPA, and this is rent..., RodM, Thu, 27 Sep 2012 18:21:20 <-- Viewing This Message
- Yes, but spend the money on a local advisor, Noel, Thu, 27 Sep 2012 11:32:02
- Check with a CPA, but my mom did for years., EricG, Thu, 27 Sep 2012 11:11:48
- We rented part of our house for years.., Cary, Thu, 27 Sep 2012 10:15:16
- In a word....., MI-Roger , Thu, 27 Sep 2012 07:07:15
Members do not see ads below this line. - Help Keep This Site Online - Signup
Post a Followup
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.
StateOfNine.com
|
SaabClub.com
|
Jak Stoll Performance
|
M Car Covers
|
Ad Available
|
Random Saabnet.com Member Gallery Photos (Click Image)
This is a moderated bulletin board - Posting is a privilege, not a right.
Unsolicited commercial postings are not allowed (no spam). Please, no For Sale or Wanted postings, SERIOUSLY.
Classifieds are to be listed in The Saab Network Classifieds pages.
This is a problem solving forum for over 250,000 Saab owners, so expect to see
problems discussed here even though our cars are generally very reliable. This is not an anything goes
type of forum. Saabnet.com has been a moderated forum since 1988. For usage guidelines, see the
Saabnet.com Mission and Purpose Page. Please remember that you are
not anonymous. Site Contact | Site Donations | Other Sites by SP -
Poverty2Prosperity.org | Run Club Menlo Park | ScreenBot
Site Members do not see red text instructions, bottom of the page anchor ads, or box ads.
Click here to see all
the Site Membership Benefits!