Tax Question: Do I have to claim the interest I paid on my homes?

Tax Question: Do I have to claim the interest I paid on my homes?
Document own 2 buildings, however, I rent them. I was disabled last year from an accident for say a year, and made little or nothing, so my source of income was super minimal for only a year. I do experience tenants that mortgage payments from me, simultaneously homes, and I don’t have a penny off today except to pay the mortgage. I am aware of I can develop interest paid as a deduction, and this really is to my profit, but do you will have to? I don’t know what you
Best Answer:
You are obligated by federal law to file a tax return. All of your rental income must be reported. If you fail to file, there is no statute of limitations. The government can come after you ANY TIME. You are not obligated to deduct the interest or other expenses. But it is in your best interest to do so, to bring your tax liability down. You can also deduct insurance, property taxes, repair costs etc.

I told you in your other question that the earnings limit was $8200 before you had to file. This is one of those exceptions I mentioned. Even if you have a loss, you are obligated to file. Trust me, the Internal Revenue Service is not an organization you want to screw with.

You still might be entitled to a refund if your facts are true and complete. It is not illegal to live off of your savings.

If you end up in a law suit based on your accident they will probably require you to produce your tax returns.

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