Rental Investing & Taxes

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Rental Investing & Taxes

Jasmine Benford
Real Estate Agent · Hampton, VA · Member since 2017 · 88 posts · 24 votes

I haven't read the tax strategy book on BP and intend to very soon. I am looking for recommendations on the best way to explain to a family member how he would file taxes on a second property, if he already has a primary residence. For example, he purchases an investment property as a rental. Any assistance would be great. Please and thank you!    

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  • Patrick I.
    St Cloud, MN · Member since 2017 · 80 posts · 29 votes
    8y

    Jasmine,

    I am not able to answer that question specifically, but I would recommend "Every Landlord's Tax Deduction Guide" published by NOLO, if you have not read it yet. It is heavy in taxes and the last section deals with filling out Schedule E.

    Good Luck

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    8y

    @Jasmine Benford

    Your family member will be required to complete "schedule E" and list all the rental income/expenses associated with the property during the year.

    If your family member has generated a loss from the rental property - he/she may be required to file form 8582(Passive Activity Loss Limitations).

    Your family member may want to reach out to an accountant to help him/her the tax return.
    Calculating basis for a rental property during the first year can be difficult.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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