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Northeastern Pennsylvania Scranton, Wilkes-Barre, Pocono area
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Old 01-06-2011, 07:07 AM
 
1,176 posts, read 2,196,459 times
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Use you place as a "rental" for tax purposes? I have no intention of ever letting strangers use our house but my wife and i both have big families so i'm sure i could legitimately "rent" the place out on occaision. I'm sure i could take a "loss" every year and make out OK with the tax man.

My question is whether or not it's worth it? I know i deduct mortgage interest by NOT renting, but i'm trying to weigh out everything. I wont be talking to my tax preparer until february and she'll help me decide what to do. If i know her she'll want me to "rent" it and take advantage of every little loophole possible. I don't want to scam the IRS but i WILL do anything and everything that is legal to do the best i can for myself at tax time.

Any advice out there on renting vs not renting? (strictly for tax purposes)
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Old 01-06-2011, 01:27 PM
 
Location: Collegeville PA & Towamensing Trails
513 posts, read 1,080,188 times
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If you "rent it out", you can also claim your mileage and tolls on trips you make there "for maintenance".
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Old 01-06-2011, 06:41 PM
 
Location: NEPA
923 posts, read 3,094,744 times
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As long as its advertised for rent ( not rented ) you can claim it as a tax/rental lose. Post an ad in your local paper, way over the fair market rental !!! Keep your rental advertisement from the newspaper and your bill !!
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Old 01-07-2011, 07:04 AM
 
1,176 posts, read 2,196,459 times
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thanks to both of your for the information/ideas. like i said i guess we'll be making a decision after we do our taxes this year. our association charges a $500 fee to allow you to "rent" your house so i'm not sure if that would tip the scales one way or another or not. we'll see.
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Old 01-07-2011, 08:37 AM
 
2,362 posts, read 5,140,230 times
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Quote:
Originally Posted by pkrplr1 View Post
thanks to both of your for the information/ideas. like i said i guess we'll be making a decision after we do our taxes this year. our association charges a $500 fee to allow you to "rent" your house so i'm not sure if that would tip the scales one way or another or not. we'll see.

I'd be 100% honest ... No use getting Jammed up over a few Dollars , In the end It'll cost you more if you ""Cut Corners "" so to say .
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Old 01-07-2011, 12:58 PM
 
1,176 posts, read 2,196,459 times
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Quote:
Originally Posted by Riverside4ever View Post
I'd be 100% honest ... No use getting Jammed up over a few Dollars , In the end It'll cost you more if you ""Cut Corners "" so to say .
like i said i'll do whatever is legally possible to help myself. i wont be lying about it.
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Old 01-18-2011, 08:29 AM
 
212 posts, read 502,404 times
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IRS is not stupid... we all know that. like they say, there are 2 things for sure in life - death and tax.

we were going to do the rental thing too but please read the rules in IRS carefully... IRS look into second home VERY CAREFULLY... you do not need the headache.

if you claim it as rental, you cannot claim the mortgage tax and etc. read it carefully.
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Old 01-18-2011, 09:27 AM
 
1,176 posts, read 2,196,459 times
Reputation: 1127
Quote:
Originally Posted by poconogirl View Post
IRS is not stupid... we all know that. like they say, there are 2 things for sure in life - death and tax.

we were going to do the rental thing too but please read the rules in IRS carefully... IRS look into second home VERY CAREFULLY... you do not need the headache.

if you claim it as rental, you cannot claim the mortgage tax and etc. read it carefully.
i've read it and it's does sound like a pain in the butt. however i think if someone does it right they could make out pretty good. i don't have the energy to "do it right"
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Old 01-18-2011, 11:09 AM
 
212 posts, read 502,404 times
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I agree... tax itself is hard and complicate enough. not to mention doing this...

Quote:
Originally Posted by pkrplr1 View Post
i've read it and it's does sound like a pain in the butt. however i think if someone does it right they could make out pretty good. i don't have the energy to "do it right"
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Old 01-18-2011, 04:50 PM
 
Location: Collegeville PA & Towamensing Trails
513 posts, read 1,080,188 times
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Quote:
Originally Posted by poconogirl View Post
I agree... tax itself is hard and complicate enough. not to mention doing this...
two words...Turbo Tax..
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