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Rental Property WorkSheet

Rental Property WorkSheet

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Published by ExactCPA

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Published by: ExactCPA on Dec 19, 2012
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 Rental 
 
 Property
 
Worksheet
 
ExactCPA
 info@exactcpa.com14 South Pierson Road Phone: (973) 996-2284Maplewood, NJ 07040 Fax: (646) 929-5562www.exactcpa.com
Please use the guide below to assist us in gathering information related to your rental properties. Pleasefeel free to use additional pages if you have more than one property. If you need assistance with this formor have any questions, please do not hesitate to email or call us. We look forward to serving you!Property Address_________________________________________________________________Date Property was Placed into Service__________________________________________________Purchase Price or Fair Market Value__________________________________________________Portion of Price / Value Attributed to Land ________________________Rents Received__________________________________________________________________Advertising_____________________________________________________________________Cleaning, Maintenance___________________________________________________________Commissions___________________________________________________________________Hazard Insurance________________________________________________________________Legal, Professional Fees__________________________________________________________Management Fees______________________________________________________________Mortgage Interest_______________________________________________________________PMI__________________________________________________________________________Other Interest __________________________________________________________________Repairs________________________________________________________________________Supplies_______________________________________________________________________Property Taxes_________________________________________________________________Utilities_______________________________________________________________________HOA Dues_____________________________________________________________________Cell Phone Expense______________________________________________________________Internet Expense________________________________________________________________Rental Worksheet / ExactCPA 14 South Pierson Road, Maplewood, NJ 07040 973.996.2284exactCPA.com info@exactcpa.com
 
 Rental 
 
 Property
 
Worksheet
 
ExactCPA
 info@exactcpa.com14 South Pierson Road Phone: (973) 996-2284Maplewood, NJ 07040 Fax: (646) 929-5562www.exactcpa.com
Other_________________________________________________________________________Other_________________________________________________________________________Did you sell or dispose of this property last year? YES NODid you use the property for personal use last year? YES NOIs your rental considered a vacation rental? YES NODid you use a vehicle to manage this property? YES NOIf yes, please complete Vehicle Expense WorksheetDid you use a home office to manage the property? YES NOIf yes, please complete Home Office WorksheetDo you share ownership with anyone else besides your spouse? YES NODo you rent a portion or unit of a multiple unit dwelling that you also reside in? If so, please explainbelow: ___________________________________________________________________________________________________________________________________________________________DisclosureI(We) verify that the information provided in this Rental Property Worksheet is accurate and complete.I(We) understand it is my(our) responsibility to include any and all information concerning income,deductions and other information necessary for the preparation of my (our) personal income tax return.Taxpayer Signature_______________________________________________ Date______________Printed Name___________________________________________________Spouse Signature________________________________________________ Date_______________Printed Name____________________________________________________
 
 Rental 
 
 Property
 
Worksheet
 
ExactCPA
 info@exactcpa.com14 South Pierson Road Phone: (973) 996-2284Maplewood, NJ 07040 Fax: (646) 929-5562www.exactcpa.comRentals Frequently Asked Questions
 Does owning a rental property offer any significant tax benefits?
Owning a rental property can have significant tax benefits. Like other business ventures, owners are ableto deduct the expenses related to their rental endeavor. There are two main issues surrounding theownership of rental property: passive loss limitations and future income tax rates. The passive losslimitation rules can limit the deductibility of expenses related to rental properties and should be exploredmore carefully.
What is the impact of the passive loss limitations rule?
Rental income is typically considered passive, meaning that you are not directly earning the income asyou would with a job. Passive losses may be deducted from non-passive income such as wages, but thereare limits. Passive loss limits max out at $25,000, and that number decreases as your gross incomeincreases. Specifically, passive loss reduces $1 for every $2 over $100,000 adjusted gross income, and by$150,000 (for married couples) the passive loss deduction is $0. If your rental losses are capped ordisallowed because of passive loss limits, that portion exceeding the passive loss limit is carried forward,aggregated and may be deducted in the year of disposal (sale).
What if I spend a significant portion of my time as a real estate professional?
If you are a real estate professional (materially participate more than 50% of your time and 750 hours peryear managing each rental activity), you can claim 100% of your losses and you are not capped bypassive loss limits. If you hire a management company you are almost guaranteed to NOT be considereda real estate professional. Please see, ” What is active participation versus material participation?” below,and how it affects your passive loss.Is depreciating my rental property beneficial to me for tax purposes? Yes, but there are some issues. Asmentioned in a previous frequently asked question, a large chunk of your rental losses can be due todepreciation. Generally speaking, a rental property is depreciated over 27.5 years, and only that portionattributed to the dwelling itself and not the land is depreciated.However, depreciation must be recaptured when you sell the asset the rental property. Your cost basis isessentially reduced by the amount of accumulated depreciation, increasing your subsequent gain on sale.Since you deducted depreciation as an expense every year during ownership, you cannot deduct theoriginal cost from your sale price to reach your taxable gain on sale. You cannot receive the benefit of the same deduction twice (once during the useful asset of the property and the second during the sale)Gains on recaptured depreciation is taxed at your ordinary tax rate up to 25% (Section 1250 gain), whilethe remaining gains are taxed at your capital gains rate

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