TaxMama Rental Property Tax Law and Information


Capital Gains Tax on Rental Property

Rental Property Tax Deductions

Depreciation of Rental Property

Mixed-Use Residential Property

IRS Forms

Residential Rental Property
Rental Property Tax Law and Information

Have you ever noticed that life is infinitely more complicated than the tax code?

If you own a home and live in it full-time, you're probably familiar with the basics of reporting expenses and deductions on Schedule A of your annual 1040 tax return. If you're an investor in commercial rental property, it's likely that you have already have a tax pro filling out Schedule D for you each year.

But, what if you own residential real estate, and live in it sometimes, and rent it out at others? Or, you rent out part of your property, and live in part of it? Or, you live in your home, vacate it and rent it out, then move back in? This is the place to get answers to these questions and others regarding residential real estate.

Capital Gains Tax on Rental Property:
When you sell residential property, if it was your principal residence, and you lived in it for at least two years, you may usually take advantage of the Personal Residential Exclusion rule: Up to $250,000 of the profit is tax-free - or $500,000 per couple.

How does the Personal Exclusion Rule apply when the property is, or has been, a rental? What are the capital gains tax implications? Find out here.

Deductions on Rental Property:
Most homeowners are familiar with deductions related to mortgage interest. When you rent out a residential property - whether you rent all of it, or just a room - what portion of the mortgage interest is deductible?

What about upkeep, maintenance, improvement costs? Are they deductible? Get answers to your questions about deductions for rental property right here.

Rental Property Depreciation:
Commercial rental property must be depreciated annually for tax purposes. If you rent out your home, can you depreciate its value on your tax return? Find out about residential rental property depreciation here.

Mixed-Use Property:
It's easy to get mixed-up about deductions, depreciation, income, expenses, profit and losses on a mixed-use property. Which tax rules apply to the portion of the property you live/lived in? Which rules apply to the part of the home being rented out? And what forms should you use to report all of this activity? Find out here!

IRS Tax Forms:
Once you understand how to treat your residential rental property for tax purposes, you'll need the proper form. Here's a list of the most frequently used forms, with some tips on when and how to use them.




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