Ask Experts Questions for FREE Help !
    khammer's Avatar
    khammer Posts: 2, Reputation: 1
    New Member

    Jan 21, 2007, 01:12 PM
    Summer home, used as a rental
    We bought a cottage in July '06, we fixed it up and enjoyed it for 2 months... after Labor Day we rented it for 3 months in 2006 for $700/month...
    Our full payment (monthly) is $1400. What is the best way to file this in our 2006 taxes? Also, we have it for sale now and should make around $34K (not deducted realtor fees $6000, sales tax, etc.)... what can we deduct as far as our own work hours, realtor fees? THanks-Ken H
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,772, Reputation: 846
    Senior Tax Expert

    Jan 21, 2007, 02:18 PM

    You must claim the income and expenses associated with the rental on Schedule E. You can add the fix-up costs to the basis and depreciate thise costs.

    You will then report the sale and capital gain (probably short-term) on Form 4797.

    You cannot deduct your work hours. The costs of the sale can be added to the basis to reduce your capital gain.

    You NEED to get professional tax help for tax year 2007 when you sell the property to make sure it is reported correctly.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Convert single fam home to duplex/rental [ 4 Answers ]

I'm looking to purchase a home for my mother and her sister in Iowa, US. Mostly for personal reasons, but also some investment potential. The home would need to be a duplex or have separate apartments up and down. Most duplexes in my area are too large for their needs and financial means. One...

Forensic Summer Camps! [ 1 Answers ]

This isn't really a question, but more of something that I thought everyone would be interested in, since this is a Forensic Science forum. I found these two great Summer Camps for Forensics for high school students, and I thought this would be the perfect place to share them with you! Union...

Foreclosure on rental home [ 1 Answers ]

I live in a rental home and I received a notice from a lawyer that the house is being forclosed on and that there are 8 claims against my landlord. I just paid rent for this month and am pretty sure that the landlord is not going to give me back my deposit. I moved in 2 months ago and have paid...

I am selling a rental home with tenants [ 2 Answers ]

I am selling a rental home and the new owners are two of the three present tenants. They want the third one out when I sell it to the other two. What do I need to do as the present owner in a notification that I am selling the property? I am in the state of KY. Thank you!

View more questions Search