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Financial Planning / Tax Strategies


Subject:  Re: Temporary Landlord Blues Date:  3/2/2001  1:38 PM
Author:  MichealMR Number:  47551 of 127549

The rental income would be reported on a Schedule E (you can download this form and the instructions from the IRS webste ( Insurance and interest you paid during the rental period would be shown as deductions on Schedule E (showing these items as deduction on the Sch. E is generally more favorable than reporting them on Schedule A as an itemized deduction).

Also - don't forget that, during the period the house was a rental property, you can also show depreciation on the Sch. E to further reduce the tax effect. Just remember (the IRS will!), that this depreciation reduces your basis in the house, and when you finally sell it, your basis in the house will be reduced by this depreciation - although who knows what the tax laws will be when you do sell.

Finally, as a CPA, I have to give a standard warning that you should consult your own tax advisor, as s/he will be more familiar with your situation than I am.

Hope this helps!
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