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Rental - Schedule E loss and AMT

I have a certain loss on my Schedule E. I have rental for the last 4 months of 2007..this was my primary home before that.

1> I have used mortgage + prop tax( both 4 months pro-rated) + HOA ( 4 months) + expenses( painting et al) + appliance upgrade + depreciation as total expenses which gets me to a loss....is this the correct way to do it ?

2>Does AMT make any difference or to put it better...are all the expenses listed above considered under AMT ( or there is something that needs to be adjusted)

Any help appreciated. Thanks in advance.

Reply to
amparikh
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Mostly. I think that appliance upgrade may be a capital improvement, so not deductible but added to the cost basis (and would need to be depreciated as well). Note that the mortgage interest and property tax for the 4 months goes on Schedule E, and property tax and mortgage interest for 8 months goes on Schedule A. Make sure that you depreciated the house only (not land), and wrote the date first put into use as Sep (so your depreciation is 1/4 the full year amount).

Yes, all the amounts above are before AMT. A nice deal. Your property tax on Schedule A is subject to AMT, and your mortgage interest and property tax on Schedule A are subject to the phaseout. But on Schedule E you're safe.

Be aware that you'll have to pay 25% on the dpreciation when you eventually sell your house, no exclusion.

Reply to
removeps-groups

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