Because a "for-profit" rental can deduct expenses,...
Employee Tax Expert

Business & farm

Because a "for-profit" rental can deduct expenses, a "not-for-profit" rental will get the IRS more money, because expenses cannot be deducted.  In years past, expenses could be deducted up to the amount of income, which could be claimed if the rental owner was itemizing on a not-for-profit rental.  But the Tax Cuts and Jobs Act did away with this deduction.  So it actually works out in the IRS' interests to question rentals that are not "for-profit" rentals so that the income must be included and taxed, whereas "for-profit" rentals are allowed to have expenses claimed.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
This widget could not be displayed.
Privacy Settings