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Ask Tyrone J. Taylor Your Own Question
Tyrone J. Taylor
Tyrone J. Taylor, Enrolled Agent
Category: Tax
Satisfied Customers: 52
Experience:  Owner at Taylor Tax and Financial Consulting
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Trying to find information regarding purchasing home in TX,

Customer Question

trying to find information regarding purchasing home in TX, I live and work in California. What are the rules about renting out the property.
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: oh and I do not currently own a home in California
JA: Is there anything else important you think the Accountant should know?
Customer: I am in need of a tax write off as my last child just left the nest. and moved to tx so I thought I would let her live in it until I retire.
JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.
Submitted: 1 year ago.
Category: Tax
Expert:  Tyrone J. Taylor replied 1 year ago.

Good afternoon,

I am an Enrolled Agent and I have 9 years of professional tax experience.

When you are asking about the rules, are you asking for something specific regarding taxes? I can tell you that you can depreciate the value of the property over time if it is a rental property. Any expenses are also deductible if you rent out the property.

If you plan on making it a rental property, your daughter must pay market rates or the IRS will not allow you to take any expenses against any revenue if you rent it for less than fair market value. Yet, you would still have to declare any income from her. The only thing that would be deductible is mortgage interest and property taxes.

Are there any other questions you specifically have about purchasing a property in Texas and how it may affect your taxes?

Customer: replied 1 year ago.
If I make all the mortgage payments by check. It would not be considered a rental correct? Then I would get the entire say $1200.00 tax write off as well as property taxes etc. so $24k per year that I could write off.
Expert:  Tyrone J. Taylor replied 1 year ago.

It does not matter how you make the payments that makes the determination as to how it would be classified. It is if you rent the property or not.

The total amount you pay as a mortgage monthly is NOT deductible. What is deductible is the portion of your mortgage payments that is interest, just as it is for your current home. And, any taxes you pay property would also be deductible. If this is also a rental, you can also deduct any expenses, and depreciate the property over time. That is the major difference.

Customer: replied 1 year ago.
thank you!
Expert:  Tyrone J. Taylor replied 1 year ago.

You are welcome. If you are done with you question, please kindly go ahead and rate my answer. Thank you, ***** ***** a great day.

Expert:  Tyrone J. Taylor replied 1 year ago.

Good afternoon,

I am checking to see if you had any further questions. If not, please go ahead and rate my answer so your question can be closed out. Thank you.