Rental of Vacation Homes Rental Income Schedule E. CPA/EA Exam
HTML-код
- Опубликовано: 11 сен 2024
- In this session, I explain rental of vacation homes, rental Income and schedule E.
✔️Accounting students or CPA Exam candidates, check my website for additional resources: farhatlectures...
📧Connect with me on social media: linktr.ee/farh...
#cpaexam #cpaexaminindia #cpareview
Studying for my tax midterm and this is sooo much better than what we have! thank you so much!!!!
Most welcome. Please check my website for more. Start your free trial : farhatlectures.com/
Thanks sir....Very very helpful
Most welcome. Thank you and please visit the website for more farhatlectures.com/
Should we proportionate Mortgage Interest and Property taxes as period cost basis or as per usage? please advise
Professor Farhat, In this recording, you explain that for Primary Rental Use Property, I can not deduct the portion of personal mortgage interest on Schedule A. I understand that, yes, I can deduct the property Taxes and the mortgage interest portion related to personal use on Schedule A. Please, correct me If I am wrong. Thank you.
Yes, you are incorrect. :-) See IRS Pub 936. "[To qualify to deduct the mortgage interest] you must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. If you don't use the home long enough, it is considered rental property and not a second home."
If a canadian owned airbnb in usa, still should still use schedule A?
why is mortgage interest in the primary rental property not taken as an itemized deduction but only the property taxes are taken as a itemized deduction ? 8:24
Under the Tax Cuts and Jobs Act, the rules for mortgage interest are very strict, only a first or second "home" qualify to deduct the mortgage interest. The rules for deducting property taxes are more flexible, and most types of taxes you pay for non-business purposes are deductible (up to limits).
Should I only schedule E for my airbnb income? Is renovation period counted as personal use?
Airbnb income generally goes on Schedule E, yes. It generally shouldn't go on Schedule C (as many tax preparers believe), unless you are running it like a hotel with daily cleanings during a guest's stay, etc, which is generally not how Airbnbs are operated. Periods of renovation don't count as personal use because you aren't using the property for personal use (and you aren't renting it under fair market rent). In fact, even if you stay at your own property, it's not considered personal use if you are staying at it for the purpose of spending a "full day" working on the property. Days you are working on the property don't count as personal use days.