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taxmap/pub17/p17-044.htm#en_us_publink1000171685

Not Rented for Profit(p70)


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previous topic occurrence Not Rented for Profit next topic occurrence

If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. For more information about the rules for an activity not engaged in for profit, see Not-for-Profit Activities in chapter 1 of Publication 535.
taxmap/pub17/p17-044.htm#en_us_publink1000171686

Where to report.(p70)


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Report your not-for-profit rental income on Form 1040, line 21. You can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Form 1040, Schedule A, if you itemize your deductions. If you do not itemize your deductions, you can claim state and local real estate taxes and a net disaster loss from Form 4684, line 18 (Form 1040 filers only) on Schedule L (Form 1040A or 1040).
If you itemize, claim your other rental expenses, subject to the rules explained in chapter 1 of Publication 535, as miscellaneous itemized deductions on Form 1040, Schedule A, line 23. You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income.