Discussion:Rental real estate expenses Deduct or NOT
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Discussion Forum Index --> Tax Questions --> Rental real estate expenses Deduct or NOT
| 1 February 2007 | |
| My client is on title but not on the mortgage loan. She lives in one apartment and rents two other apartments. She makes the mortgage payments and therefore I know that she can deduct the mortgage interest....SEC.1.163 Interest Deduction
MY QUESTION.............. Can she deduct expenses such as repairs, etc. on Sch. E for this property or not because she lives in it? | |
| 1 February 2007 | |
| She can deduct the amounts for the rental units, and the appropriate percentage of the amounts that benefit the entire building. | |
| 1 February 2007 | |
| You might want to allocate some of the mortgaage interest to Sched E to get an above the line deduction. It might save on state taxes, if nothing else. | |
| 1 February 2007 | |
| Thanks for the responses.
To Glmpllc or all who would like to reply.... Here's were I'm confused.......According to Publication 936, mortgage interest in such a situation where person is on title not on loan, should be reported on Schedule A. But since it is an apartment building where the equity owner also occupies (one apartment)..........all expenses INCLUDING mortgage interest can be reported on Schedule E. Is this correct? | |
| 1 February 2007 | |
| ...not all, just the portion that relates to the rental units...an allocation based on square footage is appropriate | |
| February 1, 2007 | |
| She can't be both the owner and the tenant, which is what you're trying for if you think about it. Pick one and only one. | |
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