Barry Dolowich: Rental and vacation home deductions
Unproven models In the end, both models of acquiring rental homes are unproven. Altisource has done a better job of attracting investors, with the stock gaining since the December IPO. Silver Bay and others have struggled since the process to acquire and renovate rental properties has disappointed the investor community that expects immediate results. Silver Bay is focusing on older homes in the beaten-down markets of Phoenix, Atlanta, and Tampa Bay. The company had 65% of the 5,571 acquired properties leased at the end of second quarter.
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Deductions allowed without regard to whether the home is used for business or the production of income, such as those for mortgage interest, property taxes, or a casualty loss, are not affected by these limitation rules. If the home is not used by you for personal purposes for a) more than 14 days during the tax year, or b) more than 10 percent of the number of days during the year for which the home is rented at a fair market rental, whichever is greater, deduction limitations (Code Section 280A) do not apply. However, the deductibility of expenses still may be subject to the hobby loss rules (Code Section 183) if rental of the residence is not engaged in for profit. If the property is rented for 15 or more days during the tax year and is used by you for personal purposes for the greater of a) more than 14 days, or b) more than 10 percent of the number of days during the year for which the home is rented, the rental deductions may not exceed the amount by which the gross income derived by such activity exceeds the deductions otherwise allowable for the property, such as interest and taxes. According to the IRS, expenses attributable to the use of the rental unit are limited in the same manner as that prescribed under the hobby loss rules (i.e., the total deductions may not exceed the gross rental income, and the expenses are further limited to a percentage that represents the total days rented divided by the total days used).
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Sky standard line rental going up in December
Broken down this is equivalent to paying just 9.95/month instead of the normal rates. Its not yet known if Sky will be increasing the price of this as well. The cost of renting out one of these is to increase in December Sky will be officially announcing the price change next month as its legally required to inform customers of price changes two months in advance. A Sky spokesperson said: As with any changes to our pricing, we will write to all our customers first to inform them of the details. However, as our website already makes clear, even with the planned changes, we will still be cheaper than BTs current standard monthly price. BTs standard line rental rates is 15.45/month and this could go up in the new year. After raising its prices earlier this year , BT said that it wouldnt raise the price of line rental again for the external link rest of the year.
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