Publication 527 (2007), Residential Rental Property

Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS))
Basis (see Basis)
MACRS (see Modified Accelerated Cost Recovery System (MACRS))

Depreciation:

Change of accounting method, Changing your accounting method.
Change of property to rental use, Property Changed to Rental Use, Personal home changed to rental use.
Claiming correct amount of, Claiming the correct amount of depreciation.
Declining balance method, Depreciation Methods, Declining Balance Method
Duration of property expected to last more than one year, What Property Can be Depreciated
Eligible property, What Property Can be Depreciated
Excepted property, What Property Can be Depreciated
First-year expensing, Section 179 deduction.
Methods, Depreciation Methods, MACRS Depreciation Under GDS
Ownership of property, What Property Can be Depreciated, Property you own.
Placement in service, Property Changed to Rental Use
Rental expense, Depreciation.
Rented property, Rented property.
Section 179 deduction, Section 179 deduction.
Special depreciation allowances, Special Depreciation Allowance
Straight line method, Depreciation Methods, Straight Line Method
Useful life, What Property Can be Depreciated, Property having a determinable useful life.
Vacant rental property, Vacant rental property.

Discount, bonds and notes issued at (see Original issue discount (OID))

Dividing of expenses (see Allocation of expenses)

Dwelling units:

Definition, Dwelling unit.
Fair rental price, Fair rental price.
Personal use of, Personal Use of Dwelling Unit (Including Vacation Home), Dwelling Unit Used as Home, Figuring Days of Personal Use

E

Easements, Decreases to basis.
Equipment rental expense, Rental of equipment.
Expenses (see Rental expenses)

F

Fair market value (FMV), Fair market value.

Fair rental price, Fair rental price., How To Divide Expenses

Fees

Points (see Points)

Fees:

Loan origination fees, Points., Settlement fees and other costs.
Settlement fees and other costs, Settlement fees and other costs.
Tax return preparation fees, Other Expenses, Tax return preparation.

First-year expensing, Section 179 deduction.

Form 1040:

Not rented for profit income, Where to report.
Part of property rented, Renting Part of Property
Rental income and expenses, How To Report Rental Income and Expenses
Schedule E, Schedule E (Form 1040)

Form 1098:

Mortgage interest, Form 1098.

Form 4684:

Casualties and thefts, How to report.

Form 4797:

Sales of business property, How to report.

Form 8582:

Passive activity losses, Limits on passive activity deductions and credits., Form 8582 not required.

Free tax services, How To Get Tax Help

G

Gains and losses:

At-risk rules, At-Risk Rules
Casualty and theft losses, Casualties and Thefts
Limits on rental losses, Limits on Rental Losses
Passive activity losses, Passive Activity Limits
Rental real estate activities, Losses From Rental Real Estate Activities
Sale of rental property, Sale of rental property., How to report.

General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS))

H

Help (see Tax help)

Home

Use as rental property (see Use of home)

Home:

Main home, Main home.

I

Improvements, , Improvements.

Improvements:,

(see also Repairs)
Assessments for local improvements, Assessments for local improvements.
Basis, Increases to basis., Additions or improvements.
Depreciation of rented property, Rented property.
MACRS recovery period, Additions or improvements to property.

Indian reservation property, Qualified Indian reservation property.

Insurance, Other Expenses

Insurance:

Casualty or theft loss payments, Decreases to basis.
Change of property to rental use, Property Changed to Rental Use
Fire insurance premiums, cost basis, Settlement fees and other costs.
Part of property rented, Renting Part of Property
Premiums paid in advance, Insurance premiums paid in advance.
Title insurance, cost basis, Settlement fees and other costs.

Interest payments:, Interest expense.

(see also Mortgages)
Loan origination fees, Points.
Rental expenses, Other Expenses

L

Land:

Cost basis, Land and buildings.
Depreciation, Land.

Leases:

Cancellation payments, Payment for canceling a lease.
Equipment leasing, Rental of equipment.

Limits:

Passive activity losses and credits, Exception., Passive Activity Limits
Rental expense deductions, Limit on deductions.
Rental losses, Limits on Rental Losses

Loans:

Assumption fees, Settlement fees and other costs.
Charges connected with getting or refinancing, cost basis, Settlement fees and other costs.
Low or no interest, Loans with low or no interest.
Origination fees, Points.

Local assessments, Assessments for local improvements.

Losses (see Gains and losses)

M

Material participation, Exception for Real Estate Professionals

Minimal rental use exception, Exception for minimal rental use.

Missing children, photographs of, Reminder

Modified Accelerated Cost Recovery System (MACRS), MACRS, Election.

Modified Accelerated Cost Recovery System (MACRS):

Additions or improvements to property, Additions or improvements to property.
Adjusted basis, Adjusted Basis
Alternative Depreciation System (ADS), MACRS, MACRS Depreciation Under ADS
Basis other than cost, Basis Other Than Cost
Conventions, Conventions
Cost basis, Cost Basis
Declining balance method, Declining Balance Method
Depreciable basis, Depreciable Basis
Determination of deduction, MACRS
Effective date, Depreciation Methods
Excluded property, Excluded property.
General Depreciation System (GDS), MACRS, Recovery Periods Under GDS, MACRS Depreciation Under GDS
Nonresidential rental property, Recovery Periods Under GDS
Personal home changed to rental use, Personal home changed to rental use.
Property used in rental activities (Table 2), Table 2. MACRS Recovery Periods for Property Used in Rental Activities
Recovery periods, Table 2. MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property.
Residential rental property, Recovery Periods Under GDS, Residential rental property.
Special depreciation allowances, Special Depreciation Allowance
Straight line method, Straight Line Method

Modified adjusted gross income (MAGI), Modified adjusted gross income.

More information (see Tax help)

Mortgages, Expenses paid to obtain a mortgage.

Mortgages:

Assumption of, cost basis, Assumption of a mortgage.
Change of property to rental use, Property Changed to Rental Use
End of, OID, Loan or mortgage ends.
Interest, Interest expense., Property Changed to Rental Use, Renting Part of Property
Mortgage insurance premiums, Settlement fees and other costs.
Part of property rented, Renting Part of Property

N

Nonresidential real property, Recovery Periods Under GDS
Not-for-profit activities, Not Rented for Profit

O

Original issue discount (OID), Points., Loan or mortgage ends.

P

Part interest:

Expenses, Part interest.
Income, Part interest.

Passive activity, Limits on Rental Losses

Passive activity:

Maximum special allowance, Maximum special allowance.

Personal property:

Rental income from, Property or services.

Personal use of rental property, Personal Use of Dwelling Unit (Including Vacation Home), Days Used for Repairs and Maintenance

Personal use of rental property:, Property Changed to Rental Use

(see also Property changed to rental use)

Placed-in-service date, Placed-in-Service Date

Points, Other Expenses, Points., Settlement fees and other costs.

Pre-rental expenses, Pre-rental expenses.

Principal residence (see Home)

Profit, property not rented for, Not Rented for Profit

Property changed to rental use, Property Changed to Rental Use

Property changed to rental use:

Basis, Basis of Property Changed to Rental Use
MACRS depreciation, Personal home changed to rental use.

Property not used as home:

Rental income and deductions, Property Not Used as a Home

Property used as home (see Use of home)

Publications (see Tax help)

Q

Qualified Gulf Opportunity Zone property, requirements for the special allowance, Qualified Gulf Opportunity Zone Property

Qualified Gulf Opportunity Zone property:

Acquisition date test, Acquisition date test.
Excepted property, Excepted property.
Original use test, Original use test.
Placed in service date test, Placed-in-service date test.
Substantial use test, Substantial use test.

R

Real estate professionals, Real estate professional.

Real estate professionals:

Passive activity rules, exception to, Exception for Real Estate Professionals

Real estate taxes, Real estate taxes.

Real property trades or businesses, Real property trades or businesses.

Recordkeeping requirements:

Travel and transportation expenses, Travel expenses., Local transportation expenses.

Recovery periods, Recovery Periods Under GDS

Rent, Settlement fees and other costs.

Rent:

Advance rent, Advance rent.
Fair price, Fair rental price.

Rental expenses, Rental Expenses

Rental expenses:

Advertising, Other Expenses
Allocation between rental and personal uses, How To Divide Expenses
Change of property to rental use, Property Changed to Rental Use
Cleaning and maintenance, Other Expenses
Commissions, Other Expenses
Deductions, how to figure, How To Figure Rental Income and Deductions
Depreciation, Depreciation.
Dwelling unit used as home, Dwelling Unit Used as Home
Equipment rental, Rental of equipment.
Home, property also used as, Rental of property also used as a home., Property Used as a Home
Improvements, , Improvements.
Insurance, Other Expenses, Insurance premiums paid in advance.
Interest payments, Other Expenses, Interest expense.
Local transportation expenses, Other Expenses, Local transportation expenses.
Not used as home, Property Not Used as a Home
Part of property rented, Renting Part of Property
Points, Other Expenses, Points.
Pre-rental expenses, Pre-rental expenses.
Rental payments, Other Expenses
Repairs, Repairs and Improvements, Repairs.
Sale of property, Expenses for rental property sold.
Tax return preparation fees, Other Expenses, Tax return preparation.
Taxes, Other Expenses
Tenant, paid by, Expenses paid by tenant.
Travel expenses, Other Expenses
Utilities, Other Expenses
Vacant rental property, Vacant rental property.

Rental income

Uncollected rent, Uncollected rent.

Rental income:

Advance rent, Advance rent.
Cancellation of lease payments, Payment for canceling a lease.
Dwelling unit used as home, Dwelling Unit Used as Home
Figuring, How To Figure Rental Income and Deductions
Lease with option to buy, Lease with option to buy.
Minimal rental use exception, Exception for minimal rental use.
Not rented for profit, Not Rented for Profit
Not used as home, Property Not Used as a Home
Part interest, Part interest.
Property received from tenant, Property or services.
Reporting, When to report., How To Report Rental Income and Expenses
Security deposit, Security deposits.
Services received from tenant, Property or services.
Used as home, Rental of property also used as a home., Property Used as a Home

Rental losses, Losses From Rental Real Estate Activities

(see also Gains and losses)
(see also Passive activity)

Repairs, Repairs and Improvements, Repairs.

Repairs:, Repairs and Improvements

(see also Improvements)
Assessments for maintenance, Assessments for local improvements.
Personal use of rental property exception for days used for repairs and maintenance, Days Used for Repairs and Maintenance

S

Sale of property:

Expenses, Expenses for rental property sold.
Gain or loss, Sale of rental property., How to report.
Main home, Sale of main home used as rental property.

Section 179 deductions, Section 179 deduction.

Security deposits, Security deposits.

Settlement fees, Settlement fees and other costs.

Shared equity financing agreements, Shared equity financing agreement.

Special depreciation allowance:

Qualified Gulf Opportunity Zone property, Qualified Gulf Opportunity Zone Property

Special depreciation allowances, Special Depreciation Allowance

Spouse:

Material participation, Participating spouse.

Standard mileage rates, Local transportation expenses.

Suggestions for publication, Comments and suggestions.

Surveys, Settlement fees and other costs.

T

Tables and figures:

Declining balance depreciation rates, Declining balance rates.
Improvements, examples of (Table 1),
MACRS optional tables (Table 3-D), Table 3-D.
MACRS optional tables (Tables 3-A, 3-B, and 3-C), Tables 3-A, 3-B, and 3-C.
MACRS recovery periods for rental activity property (Table 2), Table 2. MACRS Recovery Periods for Property Used in Rental Activities

Tax credits:

Residential energy credit allowed before 1986, effect on basis, Decreases to basis.

Tax help, How To Get Tax Help

Tax return preparation fees, Other Expenses, Tax return preparation.

Taxes:

Deduction of, Other Expenses
Local benefit taxes, Local benefit taxes.
Real estate taxes, Real estate taxes.
Transfer taxes, Settlement fees and other costs.

Taxpayer Advocate, Contacting your Taxpayer Advocate.

Theft losses, Theft.

Title insurance, Settlement fees and other costs.

Transfer taxes, Settlement fees and other costs.

Travel and transportation expenses:

Local transportation expenses, Other Expenses, Local transportation expenses.
Recordkeeping, Travel expenses.
Rental expenses, Other Expenses
Standard mileage rate, Local transportation expenses.

TTY/TDD information, How To Get Tax Help

U

Uncollected rent

Income, Uncollected rent.

Use of home:

Before or after renting, Use as Main Home Before or After Renting
Change to rental use, Property Changed to Rental Use, Personal home changed to rental use.
Days of personal use, Dwelling Unit Used as Home, Figuring Days of Personal Use
Fair rental price, Fair rental price.
Minimal rental use exception, Exception for minimal rental use.
Passive activity rules exception, Property used as a home.
Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home)
Rental income and deductions, Property Used as a Home

Utilities, Other Expenses, Increases to basis.

V

Vacant rental property, Vacant rental property.

Vacation homes:

Dividing of expenses, How To Divide Expenses
Dwelling unit, Dwelling unit.
Fair rental price, Fair rental price.
Minimal rental use exception, Exception for minimal rental use.
Personal use of, Personal Use of Dwelling Unit (Including Vacation Home)

Valuation:

Fair market value, Fair market value.

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