Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
04-17-2018 07:18 PM
Believe it or not, you CAN exclude rental income IF the property was rented out for 14 days or fewer during the year. This situation falls under what's known as "Vacation Home Rules," and it is further assumed that the property is available for personal use as well.
If it qualifies under this rule, you don't have to report the income, but you can't deduct any expenses either. Mortgage interest are deducted on Schedule A, subject to the rules limiting the number of properties to two. RE taxes are also deducted on Schedule A (no limitation on number of properties).
Note that the new tax rules will only allow you to deduct mortgage interest to the principal residence, subject to other limitations, and caps tax deductions (all types) to $10,000.
Hope this is helpful.
04-18-2018 06:52 AM
Thanks for the clarification! I will save this for next year. Do you know if the low income housing tax credit will be available for rental property next tax season?