Room Rentals Generate Good Income
Are you familiar with how the IRS treats the income and expenses for when you rent rooms in your home? Due to the shortage of affordable housing these days, many homeowners are renting out rooms in their homes, providing themselves with some additional cash. Some questions that often come up in regard to room rentals include: Is the income taxable? If so, how do I report the income from a room rental? What deductions can I take on my tax form? Can I claim a loss on rent? Answers to these questions are as follows: Continue reading
If you are considering converting your home to a rental, there are a number of tax issues you need to consider before making a final decision.
What You Should Consider Before Converting Your Home to a Rental
One of the first issues to consider is that by converting your home to a rental, your main home that is, you may give up an opportunity to realize tax-free income. Currently, taxpayers are allowed to Continue reading
When you interview an accountant it can seem like a daunting task. However, can be as simple as asking the right questions. At Worthtax, we have reviewed thousands of tax returns over our history. You want an organized, accurate accountant with good communication skills. Someone who will explain the tax breaks to you accurately and in a language you can understand as a real estate investor. Ideally, you want someone with an excellent education and training, who is easy to work with, and most of all, someone who knows the tax breaks and will save you money. Continue reading
Do you own a vacation rental? Do you use a rental agent or online rental service? Do you rent out a first or second home for extra income? Websites, such as Airbnb, VRBO and HomeAway match property owners with prospective renters; however, there are some special tax rules may apply to you.