Residential Rental Property and Taxes.. Basic Tax Knowledge

[Ibn Abney]

IRS Pub. 527. Always a good annual read. Changes slightly every year. Good to know for newer investors.

https://www.irs.gov/pub/irs-pdf/p527.pdf

Chapter 1. Rental Income and

Expenses (If No Personal Use

of Dwelling) ............... 2

Rental Income .............. 2

Rental Expenses ............. 3

Chapter 2. Depreciation of Rental

Property ................. 5

The Basics ................ 6

Special Depreciation Allowance .... 8

MACRS Depreciation .......... 8

Claiming the Correct Amount of

Depreciation ............ 12

Chapter 3. Reporting Rental

Income, Expenses, and

Losses ................. 12

Which Forms To Use ......... 12

Limits on Rental Losses ........ 13

At-Risk Rules ........... 13

Passive Activity Limits ...... 13

Casualties and Thefts ......... 14

Example ................. 14

Chapter 4. Special Situations ...... 15

Condominiums ............. 15

Cooperatives .............. 15

Property Changed to Rental Use ... 15

Renting Part of Property ........ 16

Not Rented for Profit .......... 16

Example—Property Changed to

Rental Use ............. 17

Chapter 5. Personal Use of

Dwelling Unit (Including

Vacation Home) ............ 17

Dividing Expenses ........... 17

Dwelling Unit Used as a Home .... 18

Reporting Income and

Deductions ............. 19

Worksheet 5-1. Worksheet for

Figuring Rental Deductions

for a Dwelling Unit Used as a

Home ................ 20