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Stuart O. Bronstein

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Apr 2, 2018, 3:44:32 PM4/2/18
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I'm talking to a guy who is renting a house below market value, so he
knows he can't take deductions in excess of his costs. But apparently
because he can deduct mortgage interest and property tax anyway,
Turbotax is saying he doesn't get any other deductions and it's telling
him he will end up paying tax on the income without any other
deductions.

Is that correct? Any ideas?

Thanks.

--
Stu
http://DownToEarthLawyer.com

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Alan

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Apr 2, 2018, 4:34:34 PM4/2/18
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On 4/2/18 12:40 PM, Stuart O. Bronstein wrote:
> I'm talking to a guy who is renting a house below market value, so he
> knows he can't take deductions in excess of his costs. But apparently
> because he can deduct mortgage interest and property tax anyway,
> Turbotax is saying he doesn't get any other deductions and it's telling
> him he will end up paying tax on the income without any other
> deductions.
>
> Is that correct? Any ideas?
>
> Thanks.
>
I believe it works this way:
The property is treated as a personal residence. As such, there are no
days of rental use. There is no Schedule E. Rental income gets reported
on 1040 Line 21. Property taxes and mortgage interest go on Schedule A.
All the other rental expenses go on Schedule A as Misc. Itemized
Deductions for the production of income subject to the 2% haircut in
2017... nada in 2018.

Stuart O. Bronstein

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Apr 2, 2018, 5:04:36 PM4/2/18
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Alan <temp...@vacationmail.com> wrote:

> I believe it works this way:
> The property is treated as a personal residence. As such, there
> are no days of rental use. There is no Schedule E. Rental income
> gets reported on 1040 Line 21. Property taxes and mortgage
> interest go on Schedule A. All the other rental expenses go on
> Schedule A as Misc. Itemized Deductions for the production of
> income subject to the 2% haircut in 2017... nada in 2018.

Perfect. Thanks.

--
Stu
http://DownToEarthLawyer.com
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