gregorygarver.com

[CHARITYG]

I have townhome in the Northeast. I had to unexpectedly move to another state due to job change and I live in a rental apartment now. The market being what it is, I can't sell this place without taking a big loss. I am thinking about renting it through my realtor. I have three questions about the tax implications:1) Can I still claim tax deduction on the mortgage interest (My mortgage payments are almost entirely interest at this point because I have owned it for only a year and a half)2) Will I be paying taxes on the rental income?3) If the above is true, will I be able to claim deductions on the cost of maintaining the house, the 10% of rent paid to the realtor as commission, etc?Thanks.

[ethology]

1 - no2 - yes, income tax3 - yes, if you incorporate these will be business expenses

[oj]

Actually, the tax treatment is more favorable for rentals. Now all of that has become a business expense, and it's a direct charge against rental income.You won't be able to deduct interest on Schedule A, but you will be able to deduct it on your rental income form (I want to say schedule E, but it's been a while), together with the commission you're paying the agent. You'll only pay taxes on NET rental income after subtracting all of the costs you pay.Talk to an accountant in your state for all of the gory details.

[Santiago]

Yes on 1 & 2. You will be able to depreciate the improvements, travel to view it and maintenance. Talk to an accountant though because their are some serious implications when you decide to sell or moved back into the house.-MM

[grace_anatomy1111]

1) You can claim the interest as well as all maintenance along with the commission charged by the agency.2)If the income exceeds the mortgage you mite have some exposure but, it will probably be used up in maintenance...or should be Your CPA (yes you need one) should be able to advise you....