What is the standard mileage rate allowed for traveling to a rental property for 2011?
IRS has published a list of standard mileage rates:
- Period: January 1, 2011 to June 30, 2011
- Business – 55 cents per mile, Charitable – 14 cents per mile, Medical and moving – 23.5 cents per mile
- Period: July 1, 2011 to December 31, 2011
- Business – 55.5 cents per mile, Charitable – 14 cents per mile, Medical and moving – 23.5 cents per mile
I rent a property to a relative but I do not rent at fair market rates, what should I do?
Renting to a property (to a relative) at less than fair market value is considered "personal use". This will limit your deductions to your rental income. If you know your other expenses will be more than the rent, received, you do not need to enter depreciation information, as the depreciation will not be needed to get you to zero.
I own an income property, why would I be required to issue a 1099?
Just from owning a property, you wouldn't be required to issue a 1099. If you have paid someone to work for you then you may be required to issue a 1099. Consult your accountant or the IRS.gov website.
I receive rental income from the only home I own. Do I need to report his income?
Yes. It does not matter how many homes you own (one or several) you are still required to report all income.
I paid someone to maintain my rental property yard and spent more than $600 a year, do I have to send him a 1099-MISC form?
You do not. The rules you refer to were not to be implemented until 2012 for payments made during 2012. They were repealed by HR 4. The President signed the repeal bill on April 14, 2011. In doing so, the requirement for rental property owners to issue Form 1099-MISC no longer exists for any year.
Do I enter (deduct) the property tax for the every month or for the only months I rented the property?
If you are asking about property tax expense, then you enter the amount of tax paid for the period of time the property was available for rent even if is was not occupied the whole time. If you placed or withdrew the property from rental status during the year, then prorate the annual tax to determine the amount applicable to the rental period only.
I didn't receive a 1099-INT from my bank because I earned less than $10 of interest. Do I still have to report the interest earned?
Yes, it is required by the IRS that you report the income on your tax return, even if you do not receive the 1099-INT.
Can I report as other expenses the mortgage payment I made wile my rent house was empty because reparations?
You can deduct the mortgage interest, not the entire amount of the mortgage payment - repayments of mortgage principal are not deductible.
If I converted this personal residence to a rental property what do I put down as "the purchase date?"
The purchase date or to word better the date you put it into business use, would be the date the property became available to rent. Not when you actually purchased it. You don't have to have it rented out, just available. Then you must determine the cost. It will most likely will be the Fair Market Value (FMV) minus the land if it’s newer due to real estate values dropping. It is the lower of the actual cost of purchase or FMV. No one cares what your mortgage is or isn't. You depreciate the cost over 27.5. Just make sure you have proof to back up your value. I used a tax accessor record for one of my rentals because the value had dropped so much since the purchase. Just don't forget to take the land value out.
What's PASSIVE ACTIVITY LOSSES for a rental property?
Yes, passive activity loss means your expenses were greater than your income for your rental property. It has nothing to do with selling the property.
Can I deduct utility expenses I paid after the property was available for rent, but prior to the tenants moving in?
Yes, and during gaps in between tenants.
How will renting below fair rental price affect my tax return?
If you rent a property at substantially below fair market rental, your expenses will be limited to your income. In other words, you cannot show a loss on the rental.