Below FMV Rental income

Forum|Forum|4 years ago
September 30, 2021
5 replies
29 views

Where do I enter "Below FMV" rental income?

ProSeries Professional

This topic has been closed for replies.

BobKamman

Level 15

You try real hard to find a reason it's fair rent.

Otherwise, it's just "other income," and the interest and property taxes (both subject to limitations) go on Schedule A. When miscellaneous itemized deductions in excess of 2% AGI come back (is it in 2025?), the rest of the deductions go there.

Just-Lisa-Now-

Intuit Community Champion

Depends on the reason theyre charging below FMV....is this a relative thats living in the unit, or are the discounting rent to a stranger?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

gfpstaxesAuthor

Level 5

It's their son.

T

Terry53029

Intuit Community Champion

Renting at below fair market, is considered personal use. If a taxpayer has any personal use of a dwelling that they rent, they must divide their expenses between rental use and personal use. They must divide expenses even if the dwelling doesn’t meet the definition of a residence. They may deduct only rental expenses on Schedule E (Form 1040). They may be able to deduct some of their personal expenses on Schedule A (Form 1040) if they itemize deductions.

Here is link for irs information:

https://www.irs.gov/newsroom/know-the-tax-facts-about-renting-out-residential-property

Sign up

Login with SSO

Let's get you signed in

Login with SSO