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I know rental expenses are deductible. Are they counted toward itemized deductions?

Let's say I'm single and have $9,000 in total itemizable deductions attributable to mortgage interest and real estate tax on my primary residence and charitable deductions. I do not have enough to itemize. Let's say I also have $18,000 in gross income for a property I rent out and $7,000 in allowable deductible expenses for that same rental property. Are my itemized deductions now $16,000, taking me over the $12,000 threshold? Or are rental expenses excluded from the itemized deductions calculation and reported elsewhere?

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2 Replies

I know rental expenses are deductible. Are they counted toward itemized deductions?

No.  The rental deductions are not part of your schedule A Itemized Deductions.  They go to Rentals on Schedule E.  Then the Rental Net Profit or Loss is reported on your 1040.

So you would not have enough to Itemize.  You will get the Standard Deduction.
For 2018 the standard deduction amounts are:
Single 12,000 + 1,600 for 65 and over or blind
HOH 18,000 + 1,600 for 65 and over or blind
Joint 24,000+ 1,300 for each 65 and over or blind
Married filing Separate 12,000 + 1,300 for 65 and over or blind



I know rental expenses are deductible. Are they counted toward itemized deductions?

So actually you get both the Standard Deduction and the Rental expenses.
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