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Posted by dpb on March 11, 2008, 3:40 pm
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seaweedsl wrote:
...
>> Of course, you might get away w/ a small amount on Line 21, but seems as
>> though you would be leaving money on the table as others have noted. Of
>> course, it may be that it's not sufficient $$ amount as to fret over...
>
> Hmm. "Might get away". Sounds hopeful. I imagine that I will be
> taxed the same whether I list the income on line 21 of 1040 or line x
> or schedule E. Yet I don't want to put up a red flag and attract
> attention.
I'd suggest reporting rental income on Line 21 is more of a flag than
Sch E as well as losing justifiable deductions as others have noted. I
simply mentioned that its possible w/ a low-dollar-value return there's
insufficient interest that it would get flagged, but certainly no
guarantee.
> In any case, I doubt $3600 will qualify for a "small amount" if it's
> 100% of my reportable (cash gifts made up the balance) income !
In absolute terms that's pretty small which was my point...but I still
don't see the reason desire to throw away the allowable deductions
simply for the sake of a few algebraic calculations?
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Posted by Tom Russ on March 11, 2008, 7:56 pm
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> In any case, I doubt $3600 will qualify for a "small amount" if it's
> 100% of my reportable (cash gifts made up the balance) income !
Um, if your total reportable income is only $3,600 then it would seem
that you might not even need to file an income tax return at all.
Perhaps you should look at the "Do I Need to File?" instructions.
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Tom Russ on March 11, 2008, 2:17 pm
Please log in for more thread options > seaweedsl wrote:
>
> > I am not in the business of real estate, nor rental properties, I
> > simply have somebody renting a room from me.
>
> > Reading the IRS instructions I see this:
>
> > IF YOU ARE NOT IN THE BUSINESS OF RENTING OUT PROPERTY THEN ON 1040
> > LINE 21- LIST THE TYPE AND AMOUNT OF INCOME ON THE DOTTED LINE
>
> > Can I do it this way or MUST I use a schedule E?
>
> From 1040 instructions booklet for Line 21 --
>
> "Income from the rental of personal property if you engaged in the
> rental for profit but were not in the business of renting such property.
> Also, see the instructions for line 36 on page 31."
>
> It would seem that would fit your situation to a T...
Bearing in mind that I am neither a lawyer nor a tax professional, but
I disagree.
The instructions refer to the rental of PERSONAL property, which I
believe is actually different from REAL property, such as rooms,
houses, etc.
There is a potential entry for income that is from an activity "not
engaged in for profit".
A better source of information would be Publication 17, which has a
lot more detail. There is an extensive section on real estate
rentals, in which it does mention rental of real estate not for
profit. It also refers one to Publication 535 (which I did not look
at). If you conclude that the "not for profit" description applies
to your room rental activities, it seems that you could use line 21 to
report the income. It also means that there are more restrictions and
limitations on the deductibility of any associated expenses.
So I would suggest you look at Pub 17 and 535 to help clarify if you
think the room rental is being pursued with or without a profit
motive.
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by dpb on March 11, 2008, 2:44 pm
Please log in for more thread options Tom Russ wrote:
...
>> "Income from the rental of personal property if you engaged in the
>> rental for profit but were not in the business of renting such property.
>> Also, see the instructions for line 36 on page 31."
>>
>> It would seem that would fit your situation to a T...
>
> Bearing in mind that I am neither a lawyer nor a tax professional, but
> I disagree.
>
> The instructions refer to the rental of PERSONAL property, ...
Yeah, I realized it and had posted a retraction but it hadn't yet
propagated to your newsreader by the time you saw it...
--
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Ernie Klein on March 11, 2008, 1:55 pm
Please log in for more thread options In article
> >
> > > You must have misinterpreted something. The only year that can currently
> > > be
> > >e-filed is 2007. All others must be filed on paper.
> >
> > http://www.qcktax.com/file_prior_year_taxes.php
> >
> > Quote: "TaxBrain is the only IRS authorized online Tax company that
> > allows you to prepare AND FILE your prior year return ONLINE." (my
> > emphasis)
>
> Hmmm. But does ONLINE necessarily mean e-Filing?
>
> Could they allow you to prepare the return on-line and then THEY print
> a paper copy and mail it? I wonder if there would be a signature
> issue?
That thought crossed my mind also, but the web site in question says
"Prepare Prior Year Taxes Online Income Tax Return & e-File Starting at
$14.95"
Also and 'print paper and send' would require real signatures would they
not? I thought e-file was the _only_ way to file without actual
signatures.
--
-Ernie-
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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