Rental property
SEE 2 Chapter 25 · IRS outline 3E1, 3E2, 3E3, 3E4, 3E5, 3E6
Everyone wants to be a landlord until the water heater fails. Lily Chen has a duplex, and she keeps the tenant's deposit in her own bank account. Walt rents his lake cabin for summer weeks and then uses it in August. Dr. Park's husband, Ben, spends most of his week managing a few apartment buildings, and hopes his losses will soak up her income. Theo's Part 1 chapter on rentals gave him the basics. This one goes deeper.
In this chapter
- Rental income
- Rental expenses: repairs, allocation and more
- Mixed-use property and vacation homes
- Commercial versus residential rentals
- Passive loss limits and the $25,000 allowance
- Real estate professionals
This chapter has 6 lessons and 60 practice MCQs with explanations, plus flashcards and a recall sheet.
What this chapter covers
- Rental income
- expenses, repairs and allocation
- vacation homes
- commercial and residential property
- passive losses and the $25,000 allowance
- real estate professionals