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OK, let's take your questions in order........................................
1. I presume that you filed a North Carolina (NC) return for 2012 and are asking about 2013. The answer is yes you do need to file a NC return to report the rental property activity for 2013 & you will be taxed on the net income from the property. You will want to complete your federal Schedule E on the rental activity first, and then move to the NC return after your federal is completed.
1(a). Don't forget to include depreciation on the rental property. The cost of the home would be allocated between land & building (usually based upon the ratio of the land/building in the real estate tax assessment). The building (not the land) must be depreciated over 27 1/2 years.
1(b) Hopefully the fair market value (FMV) of the property as of 1/1/2013 is greater than your original cost + improvements; if so you use your cost + improvements as your tax basis in the home. If the FMV is lower, you must use the FMV.
2. Yes you can deduct all the expenses related to the home, repairs & maintenance, taxes, insurance, whatever you incur & PAY during the year.
3. Management company fees are deductible.
4. What taxes are you talking about? Income taxes to Federal & NC, or real estate taxes?
5. An automatic extension DOES NOT extend the time to pay the tax. In fact, if at least 90% of the tax that you ultimately owe is not paid by 4/15, the IRS can invalidate the extension, subjecting you to additional penalties and interest.
Well you won't be taxed on the whole $1,500., just the net profit.
How much did you pay for the home, + improvements, approximately?
Allowing for 1/3 of the 259K to be allocated to the land, the 2013 depreciation would be approximately $6,300. So that means you'll have $6,300. of expense that won't require any cash outlay.
Do you have a mortgage?
a mortgage on the NC property? Monthly payment is approximately how much?
ah, the plot thickens
Well, hopefully the bank will do what it is supposed to do & foreclose and since it was your principal residence, there are exceptions to the debt forgiveness income that you should qualify for.
In the bankruptcy, you were allowed to keep the house & the bank would have to foreclose to get it?
The house was your principal residence, correct?
You will need to complete Form 982 to file with your tax return when (if) you receive a Form 1099(C) from the bank. You have an unusual situation. Have you heard anything from the bank? Does your tenant know that he may have to leave?
The forgiveness/Form 982 is another whole topic, but it shouldn't be a problem for you.
The so called "Mortgage Forgiveness Act") provisions (which will apply to you) have been extended through 2013. If Congress ever decides to do anything, I wouldn't be surprised to see it further extended.
Are you all set now on the "rental property"?
I don't think so. TT can handle this & you can always get help here.
I'll leave my contact info for you, now that I know the background.
If you need to contact me again with any tax or financial questions, you can just ask for "Steve G" at the beginning of your question. Again, please remember to rate my response. Bonuses, where you think they are warranted, and excellent ratings, are always most appreciated. Thanks again for using JustAnswer.com.You may get a short survey from the site; if it isn't too much trouble I would appreciate it if you would answer it; the survey results are used to rate our performance;
PS Don't spend all the rent money; keep at least 25% to be safe;
Please remember to rate my response;
Yup, no problem with that.