investment - Landlord Forum thread

investment by hugheske44 (mi) on November 13, 2009 @12:31

When you put money into the rental house, do you get anything back on your taxes? Or does it only go against your income from the rent you charge? Thanks~

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Re: investment by OK-LL on November 13, 2009 @14:23	[ Reply ]
What type of money in the rental house -- maintenance & repair are listed as deductions against the income.

Re: investment by anonymous on November 13, 2009 @14:37	[ Reply ]
look ar irs form schedule e income,deductions,depreciation

Re: investment by hugheske44 (mi) on November 13, 2009 @16:12	[ Reply ]
will do thanks... its a single family home rental....

Re: investment by hugheske44 (mi) on November 13, 2009 @16:16	[ Reply ]
I dont have any income from the rental yet because I have repairs to do, plus paint, carpet, etc. I was just wondering if I will get any of that money back that I put into it...before I have a tenant move in? This late in the year Im only gonna have about %800 to claim as income if I get someone in there right away...but Im putting over $5000 into it.~~

Re: investment

Re: investment by xxx on November 16, 2009 @13:50

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check your local laws, but generally a repair gives you a deduction of the same amount, and a capital improvement allows you an annual deduction of a certain percentage of what you spent (called depreciation)

so if you spent $100 on painting you might get a $100 deduction, but if you spent $100 on a brand new front door you might only get 5% of that as a deduction each year (actually less each year, as the following year you would get 5% of $95 and so on)

check with your accountant as to the depreciation rates for different kinds of capital improvements