General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago, 06/04/2020
Tax write-offs for personal and rental properties
Tax write-offs such as depreciation, mortgage interest, property taxes, and operation expenses...etc apply to both rental properties (property for rent) and personal properties (home for personal living) right?
- Accountant
- Charlotte, NC
- 4,364
- Votes |
- 3,635
- Posts
No
You only get to depreciate business assets.
You only get to deduct insurance on business assets.
You only get to deduct operating expenses on business assets.
On your personal home you get to deduct mortgage interest and property taxes on schedule A for itemized deductions. You will only utilize this if your total itemized deductions are greater than the standard deduction of $12k if you're single or $24k if you're married.
So even if rental properties owned by landlords are considered business assets? How do you define business assets?
You can probably also get a home office deduction. This is a great book:
https://store.nolo.com/products/every-landlords-tax-deduction-guide-dell.html
#2 Classifieds Contributor
- Accountant
- New York, NY
- 3,547
- Votes |
- 8,001
- Posts
#2 Classifieds Contributor
- Accountant
- New York, NY
@Yongjian Pan
The treatment of expenses is different depending on if it is a personal residence or an investment property.
- Basit Siddiqi
- [email protected]
- 917-280-8544
- Accountant
- Charlotte, NC
- 4,364
- Votes |
- 3,635
- Posts
Originally posted by @Yongjian Pan:
So even if rental properties owned by landlords are considered business assets? How do you define business assets?
It doesn't matter if you also own rentals. Of if your LLC with rentals also owns your personal home (which is a bad idea for a slew of other reasons)
Your primary home where you live if it's not a rental is any way is your primary home. Period.
A business/rental asset is one which is used to generate profit. Not your personal use.
Originally posted by @Natalie Kolodij:
Originally posted by @Yongjian Pan:
So even if rental properties owned by landlords are considered business assets? How do you define business assets?
It doesn't matter if you also own rentals. Of if your LLC with rentals also owns your personal home (which is a bad idea for a slew of other reasons)
Your primary home where you live if it's not a rental is any way is your primary home. Period.
A business/rental asset is one which is used to generate profit. Not your personal use.
What advice would you give if I am living in 1/2 of a duplex that I am renting out the other 1/2?
- Holly Brown
- Accountant
- Charlotte, NC
- 4,364
- Votes |
- 3,635
- Posts
Originally posted by @Holly Brown:
Originally posted by @Natalie Kolodij:
Originally posted by @Yongjian Pan:
So even if rental properties owned by landlords are considered business assets? How do you define business assets?
It doesn't matter if you also own rentals. Of if your LLC with rentals also owns your personal home (which is a bad idea for a slew of other reasons)
Your primary home where you live if it's not a rental is any way is your primary home. Period.
A business/rental asset is one which is used to generate profit. Not your personal use.
What advice would you give if I am living in 1/2 of a duplex that I am renting out the other 1/2?
You treat it like you have a primary residence and a rental.
In your head pretend you just have 2 houses.
If they'e the same size- everything gets split 50/50.
Any expenses that apply to rental side only get deducted against the rental.
Any repairs, insurance ect that apply to personal side aren't deductible.
And any thing for both like a new roof, mortgage interest ect get split between them
Originally posted by @Natalie Kolodij:
Originally posted by @Holly Brown:
Originally posted by @Natalie Kolodij:
Originally posted by @Yongjian Pan:
So even if rental properties owned by landlords are considered business assets? How do you define business assets?
It doesn't matter if you also own rentals. Of if your LLC with rentals also owns your personal home (which is a bad idea for a slew of other reasons)
Your primary home where you live if it's not a rental is any way is your primary home. Period.
A business/rental asset is one which is used to generate profit. Not your personal use.
What advice would you give if I am living in 1/2 of a duplex that I am renting out the other 1/2?
You treat it like you have a primary residence and a rental.
In your head pretend you just have 2 houses.
If they'e the same size- everything gets split 50/50.
Any expenses that apply to rental side only get deducted against the rental.
Any repairs, insurance ect that apply to personal side aren't deductible.
And any thing for both like a new roof, mortgage interest ect get split between them
Thank you so much Natalie!
- Holly Brown