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How the tax law treats rental condos

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I bought a house and plan to rent the condominium I'm now living in to a friend. Besides mortgage interest and property taxes, what costs can I deduct on my tax return next year?

I bought a house and plan to rent the condominium I'm now living in to a friend. Besides mortgage interest and property taxes, what costs can I deduct on my tax return next year?

You can deduct depreciation, repairs and upkeep, condo association dues, insurance premiums, and maintenance fees from your rental income. Assessments for any improvements made to the common areas-putting in a new swimming pool or expanding garden areas, for instance- aren't currently deductible, however; you must recover them gradually through depreciation. And if your expenses exceed your rental income, the excess counts as a passive loss that you probably won't be able to deduct. For details on the passive activity rules that govern such losses, see IRS Publication 925, available at http://www.irs.gov/publications/p925/index.html.

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