Hi, if a taxpayer is renting out a condo for under the fmv, can the mtg int. And property taxes be transferred to his schedule a, as he earns too much income for the deduction on his schedule e.
Thanks!
Thanks!
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I have seen that done and the rental income is reported as other income on line 21. There is no deduction for depreciation, repairs, insurance etc.Originally posted by LBR View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
I depends
The issue is more complex than it appears to be. If FMV is lower some because you have tenants in there who take well care of the property, than the rent value might be justified.
If used by family/friends it might qualify as second home.Comment
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Not in the eyes of the IRS Gretel. If it is rented for under FMV it is subject to personal use rules. Expenses only up to rental income and mortgage interest/property tax usually eats that up quickly.Believe nothing you have not personally researched and verified.Comment
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Tax consequences of charging below-market rent
This link provides an answer to the below market rent.
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