Rental Property Tax Question


G

GoGoJust

I purchased a house as a rental property but never lived in the house and
failed to rent it out, Can I still place deductions on my taxes?

If anyone knows, that would be great.

Thanks
 
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P

Paul A Thomas

GoGoJust said:
I purchased a house as a rental property but never lived in the house and
failed to rent it out, Can I still place deductions on my taxes?

The expenses (including depreciation) are deductible when you had the place
ready to rent. And even if it didn't rent, it's still deductible.
 
G

Gene Mat

The expenses (including depreciation) are deductible when you had the
place ready to rent. And even if it didn't rent, it's still deductible.
I disagree, expenses can only be used to offset any rental income. You can
not deduct expenses if you had no rental income. Perhaps you can take off
your maintenance expenses next tax year when you are able to rent out your
property. You can classify your previous years expenses as "property
investment".

-Gene Mat
 
A

Arthur L. Rubin

Gene said:
I disagree, expenses can only be used to offset any rental income.
Nope. For most taxpayers (with AGI less than $100,000, not filing
"Married Filing Separate"), up to $25,000 of rental losses can be
deducted.
 
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Paul A Thomas

Gene Mat said:
I disagree, expenses can only be used to offset any rental income.
Then you'd be screwing yourself out of some decent deductions.

You can not deduct expenses if you had no rental income.
Once the property is available for rent, there's no question that the
expenses are deductible.

Perhaps you can take off your maintenance expenses next
tax year when you are able to rent out your property.
Cash basis taxpayers take deductions in the year paid.
 

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