I have just leased out the home I currently reside in and will be moving soon.
I know there are many tax breaks that I keep hearing about. What are these items so I can pay attention to keep all needed paperwork for tax time? What kinds of things can be decucted? I am not using a mgmt company.
By the book, Every Landlord's Legal Guide from www.nolo.com or from your local bookstore. They have all the forms and a lot of the information you will need. Pay particular attention on screening your tenants - that has always been the key for successful landlording to me, With respect to deductions, they talk a bit about that in the book. Your biggest deduction will probably be depreciation. All the assets with the property can be deprecitated over different lives (except land which is NOT depreciable). You can also deduct maintence items while it's a rental as well as insurance, property taxes, interest on your mortgage, etc. Get teh instructions for Federal Form 1040 Sch E and for Form 4562 (depreciation) from www.irs.gov Good luck!
Excellent. Thank you very much. I will order the bundle.