If you own property that you rent
out to others, whether residential or business, then you must report the
income and expenses for that property.
This
is true even if you are just renting out a room in your house. Part of
the expense will be depreciation expense of your property. Allowable
depreciation will affect the cost basis of your property when you sell
even
if you do not take it as an expense -
so you are better off to take it.
For EACH property, provide the following:
Asset Information
- Address & description of property
- Itemized list of depreciable assets
- Prior depreciation information (
COPY
of prior year's tax return)
- Itemized list of improvements to property
this tax year (not repairs)
Rental Income
- Gross actual rent receipts (do not count
money owed to you but not received)
- Security deposits received
Operating Expenses
(include
ONLY items actually paid during this tax year)
- Wages Paid (do not include draws for
yourself or wages owed but not paid)
- Office rent paid- If you had an office in
the home, call for additional instructions
- Telephone
- Office Supplies
- Interest Paid
- Property Tax Paid
- Repairs
- Other Taxes
- Licenses
- Advertising
- Insurance
- Accounting
- Travel (for local travel, see mileage
information below)
- Utilities
- Gardening
- Printing
- Professional Books/Magazines
- Tools
- Postage/Freight
- Software
- Other business-related expenses
Assets Purchased
(with
purchase dates, amount paid and descriptions)
- Computer Equipment
- Autos/Trucks (for vehicle use, see mileage
information below)
- Desks/Files/Office Equipment
- Buildings
- Building Improvements
- Other
Leased Assets
- Description of Asset
- Length of Lease
- Date of start of lease
- Lease down payment
- Periodic payment amount
- Buyout amount at lease end (fixed or market)
Automobile/Truck Use by Mile
- Description of Vehicle
- Purchase Date
- Purchase Amount
- Date placed in service
- Total miles driven this year
- Total miles used for commuting
- Total miles for direct business use
