How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jon Andrews Your Own Question
Jon Andrews
Jon Andrews, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 3118
Experience:  I deal with all levels of tax planning and controversy - from the ordinary to the complex.
4750
Type Your Tax Question Here...
Jon Andrews is online now
A new question is answered every 9 seconds

Rental Income and Expenses

This answer was rated:

We own a property in Fla whichc we purchased at the end of 2003. We rented it for two(2) months and I would like to know if we can deduct the lot rent/ cable and any other monthly expenses encurred during the time of the rental plus can we take a portion of the expenses of the new applicances such as refrig/washer/dryer microwave and the painting and new carpeting. Don't know whow to figure it.
Customer: replied 11 years ago.
Reply to Jon Andrews's Post: We also stay at the Fl property so do we still depreciate. We rent now as of this year 3 months and we stay there for 6 to 8 weeks.

You will need to allocate the expenses between "rental time" and "personal use time".


Based on that split in time usage, your rental deductions will be limited to the amount of gross rental income. You also have a specific order in which you are allowed to deduct expenses. First, you must deduct the allocable interest and property taxes. Then, if you still have net income from the property, you can deduct the utilities, maintenance fees, etc. Then, if you still have net income from the property, you can dedcut depreciation. Any dedcutions not used in one year can be carried over to future years.


There are multiple ways of determining the allocations and some are more beneficial than others.


[email protected]
Customer: replied 11 years ago.
Reply to Jon Andrews's Post: If we rented in 2004 the house for two months do I take the taxes and lot rent and divide it by 12 and then X 2? Also there were a list of items that we had to purchase in order to rent according to the rental office. Plus we have to supply cable and of course electric. Just a question..If i Emailed you a list of all of our income/expenses..tax detail information would it be possible for you to make out our taxes and how much would it cost? I was going to EFile any so that way they do not get an actual signed copy.

That is the way that I would allocate the taxes and lot rent. All of those other items are deductible, but you cannot have a "loss" on the property unless you personal use was less than 10% of the days that it was rented. In this case, that would give you a maximum of 6 days of "personal use". Keep in mind that days that you are there "fixing up", maintaining, cleaning, repairing, etc. do not count as "personal use". A lot of this really depends on how aggressive you want to be.


I will send you a private message regarding your last question. Please watch for a "private message notification" in the next couple of minutes.


[email protected]
Customer: replied 11 years ago.
Reply to Jon Andrews's Post: Thank you for your reseponses. Would we still have to depreciate everything including the house since we are there more than the 10% for personal use?

Yes you can still depreciate the "rental" portion but the depreciation, when added to the other expenses, can not exceed the gross rental income.


jon 

Customer: replied 11 years ago.
Reply to Jon Andrews's Post: I am sorry i didn't ask it correctly. Do I HAVE TO depreciate? Or can I just take the expenses and did you say if there is a carry over it can be applied the followoing year. Also travel expenses(I forgot to mention last summer after the storms.

Travel expenses can be included.


Any excess losses carry forward to potentially offset income in future years.


I don't believe that you are required to depreciate in this instance but you probably should do the calculation. The depreciation could add to the loss carryforward and may come in handy when you eventually sell the property.


jon

Jon Andrews, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 3118
Experience: I deal with all levels of tax planning and controversy - from the ordinary to the complex.
Jon Andrews and other Tax Specialists are ready to help you
Customer: replied 11 years ago.
Reply to Jon Andrews's Post: I told you that I have Tax Cut program and my son told me that i would be far better off using Turbo Tax. Do you have any suggestion?

I don't personally use either one - but my instinct is that Turbo Tax is the better overall program for the types of issues that you are involved with.


I think, for next year, you might be better off finding someone who can do it for you. You aer starting to get into some semi-complicated areas and, even if they charge $200 or $300, it is probably worth to avoid the headache/hassle.


jon 

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    577
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    577
    10 years experience
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    1245
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3882
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg Robin D.'s Avatar

    Robin D.

    Senior Tax Advisor 4

    Satisfied Customers:

    11072
    15years with H & R Block. Divisional leader, Instructor
  • http://ww2.justanswer.com/uploads/YI/yirtual/2015-3-12_43754_egan.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    8621
    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2884
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    1837
    Over 20 Years experience