Problem
Hello, I have to do a complete income tax return and this part is confusing me. Where would I put this on this information on the tax return and what would i enter?
The wrights own a house at 872 Lighthouse Street, Mono, California 93541. They purchased this house on January 1, 2010, for $250,000. 75% of the purchase price was related to the building, and the remaining 25% was related to the land.
On January 1, 2015, they converted it to a rental property, and rented it to Anne Teak (so that she could open an Antique store). In 2015, its rental report showed the following.
Rental income $20,000
Interest Expense (mortgage) (6,215)
Repairs Expense (734)
Property tax expense (1,882)
Utilities Expense (793)
Depreciation Expense (6,534)
Total Expenses: 17,158
Net Income : 3,842.