Message Font: Serif | Sans-Serif
No. of Recommendations: 0
We are looking at buying a house to turn into a vacation rental property. We expect to offset against the income from that property against all the expenses and depreciation associated with the business. We will not use it personally for more than the amount of time allowed by law, (the greater of 14 days or 10% of time rented, IIRC.) It is expected that for a few years we will have a loss to use against ordinary income.

That said, we came darned close to being hit with AMT this year. If we trigger AMT, will it affect the business deductions? At some point, (possibly rather early on,) the rental could add to our tax liability. The profitability spread sheets we are using does not take AMT into consideration when dealing with tax consequences. What do I need to take into consideration for AMT?

doubtlessly needing to go see a CPA, but wanting to get some better understanding first
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.