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Hi all,

Searched the folder. No luck. So, here I am with two questions.

Question 1:

I live in a rented house. I own a condo apartment that I have rented out.

Can I deduct the condo association fee I pay every month from my taxable income, in addition to the mortgage interest on the apartment?

Question 2:

I live and work on the east coast, 800 miles away from my employer in the midwest. I work from my house, where I have converted a large basement room for exclusive office work where I work all the time. My address is also listed as my office address (no personal use at all). This is my primary and only place of work. I do this because it is convenient for my employer to have me represent them as an east coast office. For this, my employer pays me a monthly amount considered as "rent" for the use of my space and my computer and fax equipment (it was more convenient for them to have me use what I already had instead of purchasing brand new things for them). This "rent" has been reported in box 1 of 1099-MISC.

Can I deduct this "rent" from my taxable income?

Hope to hear from someone. I am running out of time. Aaaaieeeee....

pkishor
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<<<<<
Question 2:

I live and work on the east coast, 800 miles away from my employer in the midwest. I work from my house, where I have converted a large basement room for exclusive office work where I work all the time. My address is also listed as my office address (no personal use at all). This is my primary and only place of work. I do this because it is convenient for my employer to have me represent them as an east coast office. For this, my employer pays me a monthly amount considered as "rent" for the use of my space and my computer and fax equipment (it was more convenient for them to have me
use what I already had instead of purchasing brand new things for them). This "rent" has been reported in box 1 of 1099-MISC.

Can I deduct this "rent" from my taxable income?
>>>>>

I can see no reason to deduct the rent-- it's income.

It certainly sounds like you could take a home office deduction however, which will probably allow you to deduct expenses which approximate the "rent" your employer is paying you.

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In answer to your Question 1, Yes. You can also deduct taxes and repairs, as well as mortgage interest. This is reported on Schedule E.
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I live in a rented house. I own a condo apartment that I have rented out.

Can I deduct the condo association fee I pay every month from my taxable
income, in addition to the mortgage interest on the apartment?


Yes you can. You must also deduct depreciation or you lose the deduction.

You might want to see a CPA because your two questions lead me to think that you maybe missing valid deductions. IF you don't, buy a copy of turbo tax delux and read the help and other info on rental property and home offices.
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I wrote...


Question 2:

I live and work on the east coast, 800 miles away from my employer in the midwest. I work from my house, where I have converted a large basement room for exclusive office work where I work all the time.

[snip]

For this, my employer pays me a monthly amount considered as "rent" for the use of my space and my computer and fax equipment...

[snip]

Can I deduct this "rent" from my taxable income?



to which, jocave kindly replied...


I can see no reason to deduct the rent-- it's income.

It certainly sounds like you could take a home office deduction however, which will probably allow you to deduct expenses which approximate the "rent" your employer is paying you.


causing me to thank jocave, and ask further...

should this "rent" income (reported on 1099-misc, box 1 as rent, be reported by me in Schedule C, or Schedule E, or elsewhere such as Form 8829 (expenses for business use of home) or Form 2106 (employee business expense).

Hope to hear from jocave (or anyone soon).

Tia,

pkishor.
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If your employer provides a retirement plan with a match, and you are not participating to the extent of the match, consider the following: Propose to yuor employer that they increase your slary by the amount of the imputed rent. Use that money to increase your contribution to the plan. Employer match plops in and you have found money. Then continue to deduct all business expenses, including a proportionate share of utilities, taxes mortgage interset, condo fees if any, and depreciation on your 8829. You should come out ahead.

If that doesn't work we're back to square one. The rent is income. All the items mentioned above are deductions.
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[[Question 1:

I live in a rented house. I own a condo apartment that I have rented out.

Can I deduct the condo association fee I pay every month from my taxable
income, in addition to the mortgage interest on the apartment?]]

sure..if you do it correctly on Schedule E. for more information, read IRS Publication 527 at the IRS web site.

[[ Question 2:
I live and work on the east coast, 800 miles away from my employer in the
midwest. I work from my house, where I have converted a large basement room
for exclusive office work where I work all the time. My address is also listed as
my office address (no personal use at all). This is my primary and only place of
work. I do this because it is convenient for my employer to have me represent
them as an east coast office. For this, my employer pays me a monthly amount
considered as "rent" for the use of my space and my computer and fax
equipment (it was more convenient for them to have me use what I already had
instead of purchasing brand new things for them). This "rent" has been reported
in box 1 of 1099-MISC.

Can I deduct this "rent" from my taxable income?]]

No..you ADD this rent to your taxable income. then you must take your "rental" expenses on Sch E for the business portion of your home. This can get pretty complicated, so you might want some professional assistance on this item. but IRS Pub 527 will give you some tips.

[[ Hope to hear from someone. I am running out of time. Aaaaieeeee....]]

At least you didn't wait until the last minute.

TMF Taxes
Roy

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