Publication 527

Publication 527

A form published by the IRS explaining the tax treatment of income and expenses related to the rental of residential real estate. For example, expenses such as maintenance on residential real estate may be tax deductible as business expenses. Publication 527 shows how this tax treatment works.
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1RS Publication 527 states: "If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing Unen, or maid service, you report your rental income and expenses on Schedule C.
However, passive loss limitations and at-risk limitations may need to be applied if they have a net loss (see Chapter 3 of IRS Publication 527, Residential Rental Property).
Fortunately, according to IRS publication 527, any income and expenses received from a vacation home or rental property with less than 15 days of rent are excluded from tax reporting (both income and expenses).
For specific details on dividing expenses, see IRS Publication 527, but in simplistic terms, the division of expenses is done pro rata to the number of days rented versus not rented (key to note here is days rented versus not rented, as that is a big difference from personal days used versus the rest of the year).
Fortunately, according to IRS publication 527, any income and expenses received from a vacation home/rental property with less than 15 days of rent are excluded from tax reporting (both income and expenses).
See IRS publication 527 for MAGI details, but for simplicity's sake, we're going to assume (MAGI = AGI).
The 1998 instructions for Form 4562, Depreciation and Amortization, and Publication 527, Residential Rental Property, erroneously classified certain personal property used in a rental real estate activity (appliances, carpeting, furniture) as seven-year property.