Questions and Answers
Your Questions About Duplex For Rent
i own a duplex does it matter how much the tenant pays for rent?
because over the years i havent noticed a difference in my tax refund do you have to claim rental income and also does it matter how much the mortgage payment is in your refund
You must file an income tax on any rental property be it residential or commercial rental property.
Rental income and expenses are reported on Schedule E of your personal tax return. Or Form 8825 for partnerships and S Corporations.
You may deduct the expenses of maintaining rental property, even if the rental was not generating income. If your rental unit is currently not rented you may deduct this amount of rent you are not receiving for a certain period of time.
You would be able to deduct the mortgage payment, interest, taxes and insurance payment you make on the rental side of your duplex.
There are many deductions allowable for a property owner that include repairs made to the portion of the duplex that is rented. Up grade to meet certain government requirements for energy conservation like installing thermal windows, a certain type of roof.
There is also this invisible deduction called depreciation. This is a certain percentage of the rental unit that you may deduct each year until the rental unit is considered no longer usable by you.
If you would have a problem doing your taxes with one of the many computer tax programs you might consider hiring a professional CPA to do your taxes. Stay away from the national chains as they use recently graduated tax prepares and might not comprehend your deductions authorized being a landlord.
Your mortgage payment and rental income would be listed on your Sch E along with any and all your deductions.
I hope this has been of some benefit to you, good luck.
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