legal  taxes


Question by  mommyluvsnascar (23)

What are the irs tax laws concerning a non profit residential rental property?

I am renting my basement apartment to a non profit organization and just charge them upkeep.


Answer by  Chaneygirl (1755)

You have a rental property and should report the income (upkeep charged) on schedule E. You should also report any expenses associated with the apartment on schedule E as well. If they are reimbursing you for your expenses, this would be a wash.


Answer by  Att4372 (1704)

A non-profit might not pay tax, but you have to. You are receiving rental income, which is reported on Schedule E. You can deduct any expenses related to the space you rent to them. "Upkeep" expenses are reported on Schedule E. The net is either profit (taxable income) or loss (deductable from other income).


Answer by  cgroverla (516)

You are not engaged in a rental business and do not use Schedule E. Report your rental income as "other income" on Line 21 of Form 1040. Deduct your other operating expenses and upkeep of the rented portion of your home as miscellaneous deductions on Schedule A. You cannot take a loss or carry forward any loss or expense.


Answer by  tamarawilhite (17883)

You are not required by law to make a profit on a rental. You can charge a break-even rent in which there is no income to pay income tax upon. The only potential problem is if you deliberately charge rent at a level that results in a loss and then attempt to write off the loss.

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