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Possibly.
It depends on your basis, how much depreciation you have claimed, whether the loan is recourse or non-recourse, and whether the bank is canceling the unrecovered balance of the loan.
A foreclosure is treated as if you sold the property to the bank.
On a recourse note, it is treated as if you sold the property for the fair market value at the time of foreclosure. On a non-recourse note, it is treated as if you sold it for the balance of the loan. (I am assuming the loan balance is more than the value of the property, otherwise you would have just sold the property and paid off the loan, right?)
On a recourse note, if the bank decides not to pursue a deficiency judgment against you, then the cancelled debt (the difference between the FMV and the balance due) is taxable ordinary income (unless you meet the insolvency or bankruptcy exceptions).
You'll also need to recapture depreciation, just like on an ordinary sale. Unlike a homeowner whose personal home is foreclosed upon, you will be able to claim a capital loss.
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Can you claim plumbing repair expenses on your taxes on a rental property?
Yes. You claim income that you receive in addition to expenses like repairs, insurance, property taxes, depreciation, etc. This is the case with me assuming that you are the owner of property that you rent to others and not rental property where you are the tenant.
Can you deduct property taxes on a rental property?
Yes
What is the difference between income taxes and state taxes?
Income taxes are taxes paid based on the amount of your wages and other forms of income, including but not limited to investment income, pensions, interest and dividend income, business income, rental income, etc. Income taxes are assessed by and paid to the federal government and, depending on where you live, also state and local governments. State taxes can come in many forms, including not only income taxes, but also property taxes, sales taxes, use taxes, excise taxes, business taxes, etc.
Can I deduct the price of my property rental from my taxes?
If you are the one renting the property you can not deduct this from your taxes. If you are the landlord you can receive a deduction on your taxes for owning the property.
Does the owner of the rent to own home have to pay taxes on the rent they received?
In general, yes, the owner of a rental property will pay income tax on the rent received.
Do you have to pay tax when you buy your first house in nsw when your not going to live in it and you may rent it out?
I don't know if you are talking about income tax or property taxes. The answer is the same for both. In renting the house out you will pay income taxes on your gain from rental income and you will pay property taxes for the ownership of the property.
Can you claim plumbing repair expenses on your taxes on a rental property?
Yes. You claim income that you receive in addition to expenses like repairs, insurance, property taxes, depreciation, etc. This is the case with me assuming that you are the owner of property that you rent to others and not rental property where you are the tenant.
Do you have to pay taxes on property in Thailand as well as paying taxes on the same property in England?
If you live in the UK, you must declare rental income from overseas rental properties on the foreign pages of your tax return. If you pay foreign tax on the income, you can usually get credit for this against the UK tax you have to pay on it. You can expenses from overseas property letting income as from UK property letting income, including travel costs.
Can you deduct property taxes on a rental property?
Yes
How do you file your taxes if you lived in a rental property for the year but your roommate paid the rent?
Rent has nothing to do with how you file your income taxes, nor does who pays rent. If you are single you will file your taxes as single.
Do you have to file taxes on a small rental income?
Yes. Rental income must be reported no matter how small.
What is the difference between income taxes and state taxes?
Income taxes are taxes paid based on the amount of your wages and other forms of income, including but not limited to investment income, pensions, interest and dividend income, business income, rental income, etc. Income taxes are assessed by and paid to the federal government and, depending on where you live, also state and local governments. State taxes can come in many forms, including not only income taxes, but also property taxes, sales taxes, use taxes, excise taxes, business taxes, etc.
Can I deduct the price of my property rental from my taxes?
If you are the one renting the property you can not deduct this from your taxes. If you are the landlord you can receive a deduction on your taxes for owning the property.
Will you have to pay taxes on your rental property like income?
Yes. If you have income from rental property, you will need to pay taxes on the profits. That means that you take the total rent paid, and subtract your expenses, such as the mortgage, taxes, repairs, and other expenses.There are a number of forms and schedules that you will need to complete. A tax advisor can assist you, and most commercial tax prep software such as H&R Block @Home or Turbo-Tax can handle most of the calculations for you.
Does the owner of the rent to own home have to pay taxes on the rent they received?
In general, yes, the owner of a rental property will pay income tax on the rent received.
What is the primary source of income for counties and municipalities in Georgia?
Property taxes
When a home is foreclosed on who is responsible for paying property taxes?
Well, if the bank has forclosed they are but can seek the monies from the new buyers. If you bought the tax certificate then you do.
