AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/14/2008 Subject: Deducting rental property
Question I'm a military member who moved from Florida to Illinois but due to the bad market I couldn't sell my house and had to rent it. To get it rented I had to rent it out cheaper than my mortgage. In Illinois I rent a place here because I do not intend to live here more than 2 years and don't want to get stuck with another place. Since my rental takes in less than my mortgage and I'm paying rent for the place I stay in what can I actually deduct?
Answer You will claim the rental income on Schedule E, which is attached to your Form 1040. You can deduct your mortgage interest, taxes, insurance, utilities and any other expense you incurred for your rental in FL. You will also claim depreciation on the structure.
