My wife has a house that still hasnt sold and is now being rented. The amount of the rent is $50.00 above the amount of the monthly mortgage payments. What tax problems do we need to be aware of. Iy is our understanding that we have to file a Form W-9 since a real estate agent handled the property and rental agreement this year.
Any replies would be appreciated.

Arterial@aol.com

Hm, I just went to the IRS Web site and Form W-9 is "Request for Taxpayer ID number."

Beware, I'm not a lawyer or a CPA, and I don't even play one on TV. But it seems to me the only question is whether, if you have a loss at the end of the year, it counts as active or passive participation, given that you handled things through the agent. You want to read Page E-4 of the 1998 Form 1040 Instructions.

I personally would report the gains or losses on Schedule E, claiming I was doing active management. But what do I know?

My wife has a house that still hasnt sold and is now being rented. The amount of the rent is $50.00 above the amount of the monthly mortgage payments. What tax problems do we need to be aware of. Iy is our understanding that we have to file a Form W-9 since a real estate agent handled the property and rental agreement this year.
Any replies would be appreciated.
============

Was this house her/your principal residence?

If so and you convert it to a rental property you may be losing advantage of the tax free sale rules for residences up to 250k gain per person.

OTOH, if the house was a principal residence and you are going to lose money on the sale you may want the conversion mentioned above in that it could generate a deductible loss on the sale.

If you decide to rent - keep good records on the rental income and expenses, you will be allowed to depreciate your cost basis in the property along with deducting mortgage interest, prop taxes, repairs , upkeep, commmissions, etc.

Report these income and expenses on Schedule E and form 4562.

Pete

I personally would report the gains or losses on Schedule E, claiming I was doing active management.

Interesting viewpoint. If you have a property manager, but you still have say over repairs above a certain amount (say $300), and you exert some control over the rent that is charged, is that still considered active management?