U.S. Federal Income Tax
and California Income
I purchased a foreclosure condominium with significant deferred maintenance issues 10 months ago. I will gross roughly $24,000 for tax year 2013 from a disability
annuity. My husband will gross roughly $125,000 from his job as a production engineer.
My husband will have roughly $25,000 federal withholding
for tax year 2013 due to the number of exemptions he claims on his Form W-4
I plan to pay roughly $20,000 to repair the condominium (rental expense?) to rent during the months of October, November and December of 2013 (rental income is expected to be $1,500/month or a total of $4,500 for tax 2013). These repairs to the condominium must be done before I can rent the unit. I plan to continue renting the condominium during all of 2014.
If my husband and I file a joint tax return
for 2013 (we filed jointly for 2010, 2011 and 2012), can I deduct the full $20,000 I pay to prepare
the condominium for rental during the last three months of 2013, from our joint 2013 Federal and California tax returns
? In other words, can the $20,000 in rental preparation
expense be used to offset my husband’s income from his job as a production engineer (after offsetting the rental income of $4,500 for tax year 2013).