AboutCarole Dunton Expertise Preparation of individual income tax returns including social security, pensions, lump sum distributions, sale of personal residence, stock and mutual fund sales, distributions from individual retirement accounts, moving expenses and itemized deductions.
General knowledge of schedule C for small sole proprietorships.
No experience in corporate, estate, partnership or large business returns.
Experience 8 years as tax preparer for major national firm.
I own a condo in California. I am considering moving to Washington State and renting out my property in CA. My monthly payment on my property in CA is $3600 on the first (including 650 per month in compounding property tax payments) and $1400 on the second mortgage. If I am able to rent the property for $3700 per month, am I allowed to write the remaining $1400 off as a rental property loss for tax purposes? And, is there a limit as to the amount I am permitted to write off?
Also, am I able to write off moving expenses from CA to WA?
Thank you. Thomas
Answer Hi,
You report your rental income and expenses on Schedule E. One of your expenses is depreciation. Be sure to claim depreciation because if you sell the condo the sale will be treated as though you had taken a deduction for depreciation whether or not you actually took the deduction. Assuming that you actively participate in the rental (approve tenants, ok expenditures for repairs, etc.), you can claim a loss up to $25,000 which can be used to offset other income. If your income is high your deductible loss amount could be reduced.
Yes you can deduct your moving expenses if you have a full time job in Washington that lasts at least 39 weeks during the first 12 months.
