Posted on: 24-03-10 18:45:06
Hi
My apologies, I think I posted this questions in wrong forum.
I have a house and rent part of it to my parents so cover the basic costs (mortgage, property insurance). Am I allowed to zeo out the income from this rental from income tax prespective?
My yearly income is lower than the total amount I pay for the Mortgage, property tax and utlities alone.
Sam
Quote:
Originally posted by sam002
Hi
My apologies, I think I posted this questions in wrong forum.
I have a house and rent part of it to my parents so cover the basic costs (mortgage, property insurance). Am I allowed to zeo out the income from this rental from income tax prespective?
My yearly income is lower than the total amount I pay for the Mortgage, property tax and utlities alone.
Sam
You'll have to prorate your expenses based on the size / portion you rent out.
So say, you have 3 levels and you are renting 1 entire level (1/3rd or 33%). When putting your expenses (mortgage, utilities etc), ensure that you put put in only 33% of the total expenses, or put in the entire amount and the %.
Just keep in mind if you show a loss on your rental income, don't do it for more than 2 consecutive years, else you'll get audited.
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SS
Reiki Grand Master
Hi
This is where I am getting confused. I have a 2 level house and my parents are occuyping the main floor. They pay me a rent of $500
The mortgage and property tax alone adds up to 1500. Now I am not interested in claiming a loss. However I also dont want to pay any tax on the money they pay me. is there anyway I can even out?
My dad is in early 50s and still works, so is my mom and told me that they wont claim this rent on their return.
