Updated about 8 years ago on . Most recent reply
Question about taxes
Last year I needed to move in with my mother to take care of her. I rented out my condo. I do not have a business set up. My question is how do I prepare to pay taxes on the income I have earned? Do I need to set up a business? I was thinking no. I hate to itemize stuff, but if it's necessary I could. With the new double standard deduction, I might still come out ahead by not itemizing. I really have no clue. Could anyone post some ideas as to how they'd do it? Do I just need to see a CPA, or can I do it myself simply?
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
No, you don't need to set up a business.
Rental properties are unrelated to itemizing or the standard deduction. All the income and expenses for rental properties go on schedule E, and then the net income goes on 1040.
I highly recommend using an accountant, especially in a complex situation like this where you've converted a residence into a rental.