bnathreddy posted:

- quote -

When you begin renting your (former) primary residence, you
are establishing it as a "rental property." This involves
multiple forms, and you should -- at the least -- study Pub
527 for a starter.

However, I have an easier recommendation: Employ a
professional tax preparer for the first year you start to
engage in this "business." The Pro will prepare all the
necessary forms, and will undoubtedly be happy to instruct
you in the process. The cost of these professional services
will be deductible as an expense of doing business -- as
will other costs -- and you will be surprised that you may
actually find some tax *benefits* accrue from depreciation
(although if you later re-occupy the residence, there would
be some "issues" about depreciation recapture).

Once you have the first year return, you can decide whether
you want to "crib" from the forms and instructions involved
and return to preparing your own return ... or you may
decide it was worth it and continue.

Bill

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bnathreddy[at]yahoo.com (bnathreddy) writes:

- quote -

See IRS Publication 527.

Phil Marti
Topeka, KS

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bnathreddy[at]yahoo.com (bnathreddy) wrote:

- quote -

Your MORTGAGE is not deductible, only the INTEREST that you
pay to the lender. If you turn the residence into rental,
the interest is still deductible (on Schedule E) as a rental
expense. In addition, you will start depreciation of the
house )not land) over 27.5 years.

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I live in my primary residence and I claim tax deductions
for the mortgage. But I am renting it out and moving to
another city and I will rent a place for myself in the new
city. I rent I would be getting on my primary residence =
mortgage I am paying.

Can I claim tax deductions on my mortgage. If I can't I will
loosing a lot.

Pls suggest
thank you

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