Bitcoin Forum
December 14, 2017, 05:59:13 PM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Tax crew:Is Not-for-profit rental a"property held for the production of income"?  (Read 857 times)
noviapriani
Sr. Member
****
Offline Offline

Activity: 350


View Profile
August 11, 2014, 09:23:56 AM
 #1

Technically a not for profit rental does generate some income, though the net income is negative after all the deductions. So does that make it a property held for the production of income (in Federal income tax context)?

1513274353
Hero Member
*
Offline Offline

Posts: 1513274353

View Profile Personal Message (Offline)

Ignore
1513274353
Reply with quote  #2

1513274353
Report to moderator
1513274353
Hero Member
*
Offline Offline

Posts: 1513274353

View Profile Personal Message (Offline)

Ignore
1513274353
Reply with quote  #2

1513274353
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1513274353
Hero Member
*
Offline Offline

Posts: 1513274353

View Profile Personal Message (Offline)

Ignore
1513274353
Reply with quote  #2

1513274353
Report to moderator
1513274353
Hero Member
*
Offline Offline

Posts: 1513274353

View Profile Personal Message (Offline)

Ignore
1513274353
Reply with quote  #2

1513274353
Report to moderator
sana8410
Sr. Member
****
Offline Offline

Activity: 448



View Profile
August 11, 2014, 09:35:08 AM
 #2

Can you clarify on what you mean by a "not for profit rental".

RENT MY SIG FOR A DAY
noviapriani
Sr. Member
****
Offline Offline

Activity: 350


View Profile
August 11, 2014, 09:38:11 AM
 #3

Can you clarify on what you mean by a "not for profit rental".
You rent without the intention of making profit. The loss caused by the rental that you are allowed to deduct is limited to the income from it. You can't deduct excess loss against your main income.
Its a classification by the irs

umair127
Sr. Member
****
Offline Offline

Activity: 378



View Profile
August 11, 2014, 09:53:05 AM
 #4

Can you clarify on what you mean by a "not for profit rental".
You rent without the intention of making profit. The loss caused by the rental that you are allowed to deduct is limited to the income from it. You can't deduct excess loss against your main income.
Its a classification by the irs
I don't think he was asking you to write a definition. I think he was asking you what possible use you would have for that classification. It doesn't have a lot of application to the average person. Why would you be considering using it?

Mobius
Hero Member
*****
Offline Offline

Activity: 948



View Profile
August 13, 2014, 05:36:36 AM
 #5

If you have a rental property that generates negative income then the property itself would not be treated any differently then if the property was profitable for you. The only real difference is that you would have made a bad investment.
Rigon
Sr. Member
****
Offline Offline

Activity: 350


View Profile
August 13, 2014, 10:48:18 AM
 #6

If you do not have a net profit from rents in 3 out of the last 5 years, then the property is presumed to be rented not for profit. In that case, you cannot offset excess losses against other income--only income from the property. You should see a tax professional, though, if you have questions.

zolace
Sr. Member
****
Offline Offline

Activity: 364


View Profile
August 13, 2014, 10:56:32 AM
 #7

I'm not a tax / law guy, but just economically speaking if you are paying yourself a salary then you are receiving income from the properties. Profit and income are two different economic concepts.

⚂⚄ Pocket Dice — Real dice experienceProvably Fair
Free BTC Faucet
⚅⚁
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
Fray
Full Member
***
Offline Offline

Activity: 127


View Profile
August 14, 2014, 04:29:51 AM
 #8

If you do not have a net profit from rents in 3 out of the last 5 years, then the property is presumed to be rented not for profit. In that case, you cannot offset excess losses against other income--only income from the property. You should see a tax professional, though, if you have questions.
This doesn't sound right to me. It sounds like what you are saying is that if you make a bad investment decision then you will be penalized by the IRS by not being able to apply losses against your other gains.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!