The Tax Professionals Blog — rental property
Converting a Home into a Rental
Posted by Lee Reams Sr., BSME, EA on
Turning a home into a rental? Learn how basis, depreciation, and gain vs. loss rules work—and how Section 121 may still help reduce taxable gain.
Converting a Home to a Rental
Posted by Lee Reams Sr. on
It is not uncommon to have a client convert a personal residence to a rental property. Some even think if they convert to rental use a home that has declined in value, they can then deduct a loss when they sell the property, which is not the case.
Short-Term Rentals
Posted by Lee Reams Sr. on
Many taxpayers will rent their first or second homes using rental agents or online rental services that match property owners with prospective renters, such as Airbnb, VRBO and HomeAway. When a taxpayer rents property for a short period, special (and sometimes complex) taxation rules come into play, which can make the rents excludable from taxation; other situations may force the rental income and expenses to be reported on Schedule C (as opposed to Schedule E)The Tax Implications of Renting to a Relative
Posted by Lee Reams Sr. on
When a taxpayer rents a home to a relative for long-term use as a principal residence, the tax treatment of the rental depends upon whether the property is rented at fair rental value or rented at less than the fair rental value.