Reply to Possible to rent home "under the table"?

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[quote=Anonymous]This thread has taken some really odd turns.
1. Unless you have a really low mortgage, you are highly unlikely to move into a higher tax bracket by claiming rental income.  You claim the rental income as income.  You claim the interest paid on your mortgage, as well as any expenses (e.g. maintenance, commissions paid to rent it out), as well as depreciation, as losses.  For most people the loss showed will exceed the rental income.  This is true for me even though I am clearing about $200 a month on the rental.
2. If you make less than 150K you can deduct the 'loss' mentioned above from your income- giving a dramatic tax benefit to owning rental property.  If you make more than this you can carry forward the loss to the next tax year.
3. When we started renting out our condo we didn't report it specifically to the mortgage company.  However we used the same lender for the new property and gave them a signed statement that we intended to rent out the condo.  This didn't change anything about the condo mortgage.[/quote]

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