Mortgage Deduction On Rented Property
Started by kewlly
about 16 years ago
Posts: 34
Member since: Dec 2007
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Roughly, yes.
The answer as to where you file depends on whether it's owner-occupied or not, but generally, interest up to $1mm and taxes will be reported on your Schedule E, as will rental income. If you run a Schedule E loss, that can offset regular income, up to about $25K per year I think. However, I believe it might reset your basis on the property.
IRS.gov is pretty good about providing answers to these questions, but it's complicated, so consult an accountant.
ali r.
DG Neary Realty
Put the title under an LLC. This will protect you personally if you were to lose a lawsuit having to do with your rented apartment. Front_porch is correct in her figures except in an LLC there is no maximum to your deductions on the property and you can include depreciation which will reduce your cost basis. The $25k limit to offset your regular income would stay the same even under the LLC except under certain circumstances.
A bank would give you a home mortgage at a competitive rate even if it's to an LLC?
Can an LLC buy a coop in Manhattan?
Can an LLC buy a coop in Manhattan?
This is a guess but I would think no. A coop board wants to see the finances of the buyer and if this is an LLC set up just to purchase then there is no financial history. If you have an established LLC that has money coming in then maybe.
So, back to OP, assuming I have a condo under 1M and I want to rent it out. I can deduct all the interest (which is significant), cc, tax, insurance, plus cost to set up LLC, plus repairs?? Is this correct?