Terms in this set (13) Rationale: On an owner occupied home the only tax deductions that a homeowner may make are for
mortgage interest and real estate taxes
. There are no deductions for repairs, improvements or maintenance.
Which property owner expenses are tax deductible?
Management fees
: If you pay someone to manage your property, including the collecting of rents, you can deduct those fees. You can also deduct fees paid to someone for finding you new tenants. Repairs / maintenance: You can deduct expenses for repairing your rental property and maintaining it in proper condition.
Which of the following May a homeowner deduct on his federal income tax return?
Which of the following can a homeowner deduct for federal income tax purposes? The homeowner
can claim mortgage interest deductions
, but she CANNOT deduct repair expenses or depreciation.
When a taxpayer owns a home that he does not live in the home is considered to be?
For tax purposes, rental expenses can NOT exceed rental revenues. When a taxpayer owns a home that he does not live in, the home is considered to be a(n)
(1) property for tax purposes
. If he rents the property at fair market value, any loss is (2) (deductible/nondeductible) for tax purposes.
When a taxpayer rents his residence to unrelated parties for 14 or fewer days, and the taxpayer lives in the residence for at least 15 days, how is the rental activity treated? -The owner
does NOT
include the rental income and is not allowed to deduct any expenses related to the rental.
Are realtor fees tax deductible?
Fees or commission paid to agents who collect rent, find tenants and maintain your rental are
tax-deductible
.
What expenses can I claim as a landlord?
- water rates, council tax, gas and electricity.
- landlord insurance.
- costs of services, including the wages of gardeners and cleaners (as part of the rental agreement)
- letting agents' fees.
- legal fees for lets of a year or less, or for renewing a lease of less than 50 years.
What is the maximum allowable gain from the sale of their longtime primary residence that may be claimed as tax exempt by husband and wife filing jointly?
Known as the home sale gain exclusion or primary residence exclusion, this rule says that upon the sale of a primary residence, as much as
$250,000
in capital gains can be excluded from taxation for single tax filers ($500,000 for married filing jointly).
Can I deduct property taxes if I take the standard deduction?
Itemized deductions. If you want to deduct your real estate taxes, you must itemize. In other words,
you can't take the standard deduction and deduct your property taxes
. For 2019, you can deduct up to $10,000 ($5,000 for married filing separately) of combined property, income, and sales taxes.
At what income level do you lose mortgage interest deduction?
There is an income threshold where once breached, every $100 over minimizes your mortgage interest deduction. That level is
roughly $200,000 per individual and $400,000 per couple for 2021
.
Can a husband and wife have separate primary residences?
It's perfectly legal to be married filing jointly with separate residences
, as long as your marital status conforms to the IRS definition of “married.” Many married couples live in separate homes because of life's circumstances or their personal choices. …
How do I change my primary residence for tax purposes?
Complete a change of address
form at the local post office
. Update your voter registration address online or by visiting the county's election office. Visit your county property appraiser's office to file for homestead. Depending on your state, you might need to file a homestead declaration and property tax exclusion.
What is the 2 out of 5 year rule?
The 2-out-of-five-year rule is a rule that states that
you must have lived in your home for a minimum of two out of the last five years before the date of sale
. … You can exclude this amount each time you sell your home, but you can only claim this exclusion once every two years.
Which of the following items generally is deductible as a real estate tax?
The only costs you can deduct are state and local real estate taxes actually paid to the taxing authority and interest that
qualifies as home mortgage interest
, and mortgage insurance premiums.
Which of the following best describes a qualified residence for the purposes of determining a taxpayer's deductible home mortgage interest expense?
Which of the following best describes a qualified residence for purposes of determining a taxpayer's deductible home mortgage interest expense?
The taxpayer's principal residence and ONE other residence (chosen by the taxpayer)
.
Is rental income Schedule C?
If you meet the qualifications to be considered a real estate professional, your rental income is not considered to be passive, and can be reported onto a Schedule C. On the Schedule C, you
should report your rental income and any relating expenses or deductions
.
