Bmellow <bdk12000[at]hotmail.com> wrote:

- quote -

Your home, or a rental property?

- quote -

What is that? Anyway, the type of deed doesn't matter.

- quote -

A loss on your home is personal and non-deductible.

If the mortgage company foregave the difference, that would
be taxable income (unless it was in the course of a
bankruptcy).

Seth

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"Bmellow" <bdk12000[at]hotmail.com> wrote:

- quote -

Payments of mortgage principal are never deductible. If
"similar" means that you're talking about a personal
residence, a loss on the sale of it is not deductible. If
you are dealing with a rental property, your gain or loss is
calculated by subracting your adjusted basis from the net
sales price. See IRS Publications 527, 550 and 551

--
Phil Marti
Clarksburg, MD

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I have a similar question to this topic, if I sell a home
under a "quick deed" for less than its worth and for less
than I actually still owe on it thus a difference in price,
which now the mortgage company is looking for me to pay. Can
I write this off as a lost on my taxes?

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"Gene E. Utterback, EA" <eagent[at]alliancetax.com> writes:
- quote -

Well, that's not quite true. What is true
is that if you have an *overall* loss on the
rental property, you cannot write off that
*loss* egainst your other income until you
dispose of the property, given your gross
income.

However, you absolutely can write off the expenses
you listed against the *rental* income (but, as
stated, if that results in a rental loss, you cannot
write off that rental loss).

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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"diverdude" <david[at]hershmanfamily.com> wrote:

- quote -

If your income is over $150K, you cannot claim any LOSS on
the rental property. You can still write off all of your
expenses. Any net loss is SUSPENDED until you have a profit
or sell the property (or have income under $150K that
permits you to take a loss within certain limits).

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"diverdude" <david[at]hershmanfamily.com> wrote:

- quote -

It is true, there is no way around it.

Sorry,
Gene E. Utterback, EA

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I am looking into purchasing a rental property and plan to
write off my expenses such as tax, interest, etc. I was
told that if I earn over $150k in my normal job I can not
write ANYTHING off until I actually sell the property. Is
that true. This doesn't seem right. If it is true, is there
any way around it?

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