I recently moved from North Carolina to Virginia for work. I now rent my house in North Carolina to a friend for less than my principle and interest payment. How do I claim this income (or will it be a loss?)

ANSWER

Expert Mark Anderson's Answer:

You claim rental income and expenses on Schedule E.   You can only deduct the taxes and interest on the property.   You can allocate these expenses to Schedule A and Schedule E based upon the time you used the home as your personal home versus a rental.   You can also deduct depreciation on the home and rental expenses on Schedule E.  I hope this answers your question.  Thank you. 

Mark Anderson, JD

Montana

21 yrs experience

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