Real Estate

The American Recovery and Reinvetment Act put in place in 2009 gives taxpayers a new credit for energy-efficient improvements made to their homes in 2009 and 2010.  A similar credit was available in 2007, but not in 2008.  Home improvements qualifiying for this credit include the addition of

Real Estate Professionals have special rules for reporting and deducting rental income and losses on their personal tax returns (form 1040).  If you are a real estate professional then rental activities that you materially participate in during the year are not passive activities.  This means that

Rental losses for real estate activities are generally considered passive activities and the amount of loss you can deduct is limited.  You can usually deduct more of a loss if you "actively" participate in your rental activity.  Active participation is if you own at least 10% of the rental property

Depreciation is used for items that cannont be fully expensed in the year they were paid for.  For a rental property this would include items such as the building, appliances, furniture, and improvements.  Property that should be depreciated meets the following requirements: You own the

If you own some property and decide to start renting it out, there are a few things you should note for tax purposes.  If you change your home or other property to rental use at any time during the year, then you  must divide the expenses, such as taxes and insurance, between rental and personal

If you own rental real estate property you may be wondering what all can be deducted as expenses on your tax return.  There are a few general rules about deducting rental expenses. You can generally deduct your rental expenses in the year you pay them You can start deducting expenses paid from

When you own a rental home the rental income is any payment you receive for the use or occupation of the property. All rental income must be included in the gross rental income on the Schedule E of your 1040 tax return. You must report rental income according to the following: You must report

Do you own your own home? If you own your own home and itemize deductions on Schedule A on your personal tax return (form 1040) then you can deduct any real estate taxes you pay. This is one of the tax benefits of home ownership. Real estate taxes paid on your second or vacation home can also be