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lalji · Mar 23, 2013, 01:45 PM

Atlanta tax expert,

I live in a rental apartment which comes with onsite parking spot. I rented out the parking spot in 2012. Am I supposed to pay taxes on rent received from parking spot? Please advise. Thanks.

AtlantaTaxExpert · Mar 23, 2013, 01:53 PM

Yes.

You report the rent as "other income" on Line #21 of Form 1040.

lalji · Mar 31, 2013, 08:44 AM

Atlanta tax expert,

I see an option 'Rental income from personal property' in Other income (I am using taxact software to amend my return). However I do not own the parking space. I live in a rental apartment which comes with parking space. So where should I include parking rent income.

Fr_Chuck · Apr 1, 2013, 12:11 AM

That would work, since you have it rented, it is yours. Also the value or cost you pay for the spot could be considered expense to off sent income, how much do you pay for the spot?

AtlantaTaxExpert · Apr 2, 2013, 05:22 AM

Again, line #21 of Form 1040.

lalji · Apr 2, 2013, 06:47 AM

Fr_Chuck,

I do not pay cost of parking space separately of rent. The apartment rent covers both apartment and parking space.

lalji · Apr 7, 2013, 07:30 AM

Can I deduct part of the apartment rent I pay to the landlord as expense?

ScottGem · Apr 7, 2013, 08:10 AM

Originally Posted by lalji

Can I deduct part of the apartment rent I pay to the landlord as expense?

Why? Because you have a business renting out 1 parking space? Theorectically you could claim a home office deduction for running your rental business.

Practically, its not a good idea. You would have to prove that the percentage of space you want to deduct is used solely for your business.

lalji · Apr 7, 2013, 09:14 AM

You did not read my full post. I live in an rental apartment which comes with parking space. I do not pay cost of parking space separately of rent. The apartment rent covers both apartment and parking space. So my question was "Can I show rent received from parking space as income and deduct part of the apartment rent I pay to the landlord as expense".
Atlanta tax expert-Can you please suggest? Thanks a lot for your help.

ScottGem · Apr 7, 2013, 09:32 AM

Yes I did read the whole thread. I've actually followed the thread from the beginning. I didn't address the reporting of the income since it had already been addressed.

I stand by my response. I do see your thinking. Since part of your rent is for the space, then its an expense against the income. However, I doubt if the IRS would see it that way. Since the space is not itemized, it's a benefit of renting not an expense.

lalji · May 12, 2013, 07:21 PM

Atlanta tax expert,

I paid taxes on parking space in my 1040 return for 2012.So for 2013 does it make sense to get separate lease from my landlord. One for apartment and another for parking space. If I do this can I deduct parking space rent from parking space income?

My lease renews June 1st so I can ask my landlord about this. Will this create any issues with IRS or is it safe to do so?

Please advise. Thanks for your help.

AtlantaTaxExpert · May 12, 2013, 09:49 PM

What you propose makes sense ONLY IF you can show exactly how much of the rent you pay goes for the parking space. If that amount can be separated from the rent for the rest of the apartment, then you can deduct it from the income you earn from renting it.

Otherwise, do not bother.

lalji · May 17, 2013, 07:55 AM

So, will it work if I ask my landlord to make two leases: on for apartment rent and another for parking space?

AtlantaTaxExpert · May 17, 2013, 08:50 AM

Yes, exactly.