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Net Rental Income and US Tax Estimator

When calculating Federal Income Tax on rental income there are a few things to consider.

  1. Depreciation and Mortgage Interest should be included in this figure. It appears as though these deductions are split out, and displayed in the general deductions area. This appears to lead the app to count these as itemized deductions, but that is not how these work for rental income. You get depreciation and mortgage interest on rental property even if you don’t itemize. 1b. You support Housing assets where a portion is used for personal use, and a portion for rental. In this case you would need to apply the rental portion of the mortgage interest and depreciation, against net rental income, and only consider the personal portion of mortgage interest for itemized deduction.
  2. The QBI deduction should also be included against final net rental income (after all eligble deductions are applied). This is also a deduction directly against net rental income and does not require itemization.

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Tagged as Suggestion

Suggested 20 April 2022 by user Shawn S

Moved into Completed 08 September 2022