Quote:
Originally Posted by Bugeater
Yep, getting past that $12,600 mark is the problem. I'm hoping a rental could help with that. And as far as the fraud part...let's just say I have experience with that from when I was running my painting business. 
We caught a huge break that unfortunately involved the death of family member. But yeah, it's nice, and it opens the door to a lot of other possibilities for us. Right now we're basically just blowing the extra money, we need to be more smart with it. |
Ok. Don't look at a rental as an opportunity to take itemized deductions.
You report rent income on a schedule E. All your expenses are account ted for on the schedule E so you're taxed on the net. If you finance a rental don't put the interest A (itemized deductions). Unless you can get a far better rate on your house than a rental but even then you risk losing the deduction for the rental at all if you don't get to the standard deduction.
RE: paid off house. Does t matter how it happened, it's still a big deal.