Have Finance Questions? Ask a Financial Expert Online.
Hi, my name is Mark. I will be happy to help you with your questions. It sounds like you would be renting a room in your condo?
I am sorry I did not quite understand. Thank you for clarifying this. If you rent your condo you would be able to deduct the expenses associated with the rental property. These expenses include property taxes, mortgage interest, repairs etc. You would also be able to depreciate the property. A residential property is depreciated over 27.5 years. You would offset your expenses against the rental income that you receive. This information would be reported on Schedule E. If you have a loss you may or may not receive a current benefit. The amount of rental loss that you can claim each year is limited to $25,000. If you have a loss in excess of this it would be carried forward to the next year. This is an income threshold the could reduce the available loss. The amount of rental loss becomes limited once your income reaches $50,000 ($100,000 for a married filing jointly). The available loss is eliminated when your Adjusted Gross income reaches $75,000 ($150,000 is married filing jointly). You do not lose the loss, it is just that the loss is suspended and carryforward. The loss could be used in future years if your income changes or would be utilized when you sell the property.
I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.