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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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WE have a studio apartment above our attached garqage that

Resolved Question:

WE have a studio apartment above our attached garqage that we are considering using it as a rental for extra icome. How we do our taxes with this extra income?
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.



You would simply file Schedule E with your personal tax return to report the rental income from this apartment, as well as any rental expenses you had. Your rental expenses would include depreciation on the apartment, the cost of maintenance and repairs, the cost of any utilities you provide, a percentage of your property taxes and a percentage of any mortgage interest you pay on your property. Your net rental income after deducting those expenses is then what is subject to tax.


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