Click To View Links

Tax Benefits for Rental Homes

by W. Been



I am buying my first home to use as a rental home. Are there any tax benefits for rental properties or any other programs for investment buyers that I can take advantage of?

=====ANSWER=====
Hello Mr. Been,

Thank you for coming by my website and asking a question. It is certainly a great question. However I'm not able to offer legal or tax advice.

What I did is look up the answer at IRS.gov for you. Below you will find a link to their website.

I have owned and rented several homes in the past. There are a number of tax benefits for doing so, I'm just out of touch since it's been awhile for me. I sold off all my properties back in the late 90's.

It is a good time to buy investment properties right now with the values so low. So I congratulate you for jumping in the market.

IRS Website

To give you a brief summary, this is what I understand it to mean.

It seems that the IRS considers cash or the fair market value of property no matter if real property or real estate as taxable income to you. You can deduct expenses of rental property. The are reported on form 1040 shcedule E.

Since most people operate on a cash basis, when rental income is received it is considered income for that month. The same goes for expenses, when you spend the money it's a deduction.

There are different expense you can deducted from rental income like depreciation, repairs and other kinds of operating expenses.

There are some special rules that you would want to pay attention to. Be sure to ask your accountant or tax person.

Just give that link above a visit for much more details.

Hopefully you find this helpful. You will need to seek the advice of a tax professional next year when you prepare your taxes to see how much you can save.

Kind Regards,

Jeff



Comments for Tax Benefits for Rental Homes

Click here to add your own comments

Tax Benefits for Rental Homes
by: Pablo

Cool question and what an opportunity right now!! I too want to buy some homes to use as rentals. I appreciate the IRS response for tax purposes too.

Click here to add your own comments

Return to Ask The Expert.

Recent Articles

  1. Kansas First Time Home Buyer Grants

    Dec 03, 18 04:09 PM

    Looking for Kansas first time home buyer grants for your down payment? Find the best assistance programs for home buying in Kansas on this page.

    Read More

  2. Iowa First Time Home Buyer Grants

    Nov 29, 18 01:15 PM

    Research Iowa first time home buyer grants here! Live your dream by obtaining grants for home buying in Iowa! The coolest list of home mortgage grants you can find.

    Read More

  3. Indiana First Time Home Buyer Grants

    Nov 27, 18 03:14 PM

    Reviewing Indiana first time home buyer grants to purchase a home? Find the best grants, programs for home buying in Indiana and other assistance on this page.

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans


Follow Us On Twitter

follow me on twitter