Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
reuternews
New Member

We have questions regarding reporting of income from a rental home in AZ that our daughter paid us at a non-fair market rate. We discounted the rent due to her limited income.

1. Total rent proceeds for 2016 was $6300. Where is the proper location to report this income?
2. We were living in Washington state in 2016.
3. Can we deduct any associated expenses for the rental property? Maintenance/repairs and associated supplies, property taxes, HOA fees, etc.?  Total expenses if these categories are allowed was approximately $6348. Where would this information be placed on the return, if permitted?
Thanks!
1 Best answer

Accepted Solutions
MinhT
Expert Alumni

We have questions regarding reporting of income from a rental home in AZ that our daughter paid us at a non-fair market rate. We discounted the rent due to her limited income.

f

If you rent your property below fair market value, the IRS considers that you do not rent your property to make a profit. In this case, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.

Mortgage interest and property taxes paid are claimed in Schedule A as for your residence.

Please refer to this IRS document, especially the section on Not Renting for Profit on page 16 on how to report income and expenses:

https://www.irs.gov/pub/irs-pdf/p527.pdf


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
MinhT
Expert Alumni

We have questions regarding reporting of income from a rental home in AZ that our daughter paid us at a non-fair market rate. We discounted the rent due to her limited income.

f

If you rent your property below fair market value, the IRS considers that you do not rent your property to make a profit. In this case, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.

Mortgage interest and property taxes paid are claimed in Schedule A as for your residence.

Please refer to this IRS document, especially the section on Not Renting for Profit on page 16 on how to report income and expenses:

https://www.irs.gov/pub/irs-pdf/p527.pdf


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v