topic We own a rental property under a land contract and rent it out. We pay taxes water/sewer and garbage and complete all repairs. How do we deduct payments to the owner in Investors & landlords

We own a rental property under a land contract and rent it out. We pay taxes water/sewer and garbage and complete all repairs. How do we deduct payments to the owner

rwt50371 — Mon, 30 Mar 2020 22:52:24 GMT

Re: We own a rental property under a land contract and rent it out. We pay taxes water/sewer and ...

MinhT1 — Tue, 31 Mar 2020 00:35:05 GMT

If you rent your property at fair market value, you can deduct interest paid on the land contract to the land owner as rental expenses. Other expenses such as repairs are also deductible.

@Hal_Al Thank you. I misread it as a land rental contract.

Edited 03/30/2020 | 5:35 PM PST

Re: We own a rental property under a land contract and rent it out. We pay taxes water/sewer and garbage and complete all repairs. How do we deduct payments to the owner

Hal_Al — Mon, 30 Mar 2020 23:46:46 GMT

You may NOT deduct the payments to the owner. Payments to the owner usually consist of principal and interest. Only the interest portion of the payment is deductible.