Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Whether Or Not To Use Forms 6198 Or 8582

Having a dispute with a tenant or landlord? Rental Law discussion

Whether Or Not To Use Forms 6198 Or 8582

Postby Jarren » Sun Dec 04, 2016 3:27 am

s About Taxes)/whether or not to use forms 6198 or 8582 Advertisement Expert: Carole Dunton - 3/29/2008 Hi,   My husband and I bought a rental fixer-upper house in mid October in 2007.  We hired a contractor to do the parts we could not do, and we finished the rest ourselves.  Everything was finished by mid December.  We have not found a tenant yet.  Thus, we only spent without gaining anything. According to the instruction for form 8582-Passive Activity Loss Limitations(http://www.irs.gov/pub/irs-pdf/i8582.pdf), we should be qualified to use this form, for it's more than 30 days without a tenant.  However,I am not sure whether or not to use the form, for there are so many different conditions.  Also, I am not sure if I should use the form 6198-At-Risk Limitations(http://www.irs.gov/pub/irs-pdf/i6198.pdf).

We spent about $8000 to fix everything.  Should we use either form to deduct the expenses?  Thanks
Jarren
 
Posts: 46
Joined: Sun Feb 16, 2014 12:44 pm

Whether Or Not To Use Forms 6198 Or 8582

Postby talford » Mon Dec 05, 2016 3:43 pm

Hi,

If you tried to rent it in December and simply didn't find a tenant, you could complete Schedule E for 2007 amd deduct expenses.  Something as simple as placing an ad in a local paper would show that the property was offered for rent.

If you made capital improvements to the home, they would be depreciated over time rather than written off in the first year.  Repairs and maintenance could be fully deducted.  Also the home(not the land) would be depreciated over time and be a deductible expense each year.

You are at risk if you are the only investor and would lose your investment if something happened to the property.  That being the case, you wouldn't need to file the form.

Regards,

Carole
talford
 
Posts: 36
Joined: Sat Oct 06, 2012 1:05 pm

Whether Or Not To Use Forms 6198 Or 8582

Postby Jubal » Wed Dec 07, 2016 3:17 pm

s About Taxes)/whether or not to use forms 6198 or 8582 Advertisement Expert: Carole Dunton - 3/29/2008 Hi,   My husband and I bought a rental fixer-upper house in mid October in 2007.  We hired a contractor to do the parts we could not do, and we finished the rest ourselves.  Everything was finished by mid December.  We have not found a tenant yet.  Thus, we only spent without gaining anything. According to the instruction for form 8582-Passive Activity Loss Limitations(http://www.irs.gov/pub/irs-pdf/i8582.pdf), we should be qualified to use this form, for it's more than 30 days without a tenant.  However,I am not sure whether or not to use the form, for there are so many different conditions.  Also, I am not sure if I should use the form 6198-At-Risk Limitations(http://www.irs.gov/pub/irs-pdf/i6198.pdf).

We spent about $8000 to fix everything.  Should we use either form to deduct the expenses?  Thanks
Jubal
 
Posts: 38
Joined: Thu Feb 06, 2014 3:06 am


Return to Rental Law

 


  • Related topics
    Replies
    Views
    Last post