Rental Property Eligibility

[Ebeneezer]

s About Taxes)/Rental Property Eligibility Advertisement Expert: Helen P. O`Planick, EA - 3/16/2008 Hi Helen,  I owned a townhome as of Jan '07, trying to rent it.  Did so as of July '07.  : Is the HOA fee deductible? Also, is there any depreciation I can take on this property.  We never used it for personal use.

ANSWER: All fees with the rental are deductible and you must take depreciation(or at least pay taxes when you sell as if you did).  

I would strongly suggest seeing a tax professional this year to make sure you are set up correctly.

Helen, EA in PA

---------- FOLLOW-UP ----------

Hi Helen,

Thanks very much for the advice.  Your good answer created two  questions for me:  1. Re depreciation, I am not clear what you  mean by " or at least pay taxes when you sell as if you did " .  Would you please elaborate?  2. If the expenses are larger than the total rent income, can these be rolled over to the following year(s)?  Finally, I will follow your advice and go to a tax professional but feel it is important to learn to ensure a better understanding.  Thank you again.  Rgds, Al

[Hackett]

You are deemed to have claimed depreciation allowed or allowable, so Congress says claim it now or claim you did when you sell.

If your expenses are limited, it can be carried over, but that depends on your AGI and filing status.

Helen, EA in PA