AboutIvan Roth Expertise Federal and State Income taxes I do tax returns for partnerships and C corporations I am well versed with State Franchise taxes for CA, CT, FL,NY,TN,TX.
Experience Eight years as tax manger for a real estate company
Question First of all, thanks for the service. I'll keep the question short.
I own two homes. one is primary. the other will be rented to a tenant on section 8 (government assistance). The county will pay the full rent payment, which is $150 over the mortgage i owe to the bank. This is the first time i put a property on the rental market. Is there anything i should be aware of in terms of tax preparation? will the Fed/State consider the rent payments income even though i simply turn that payment over to the mortgage company. what can i do now to minimize my tax obligation at year end?
Answer Yes the total amount of rent will be income. You will be able to deduct any expenses you incur relating to this home including the portion of the mortgage payment relating to interest, the principal is not deductable, but you may depreciate the cost of the building and inprovements over 27.5 years all of this goes on the 1040 schedule E
