Renting Water & Paying Taxes

We live in Virginia, but recently purchased a terrific condo on the water in FL. We will receive 3 mths of rental income (that covers the note and condo fees) in 2004. We incurred roughly $10k in expenses to fix it up to get it ready for rental. Will the income received simply be taxed as ordinary income? How sld I account for the $10k worth of expenses? Do I need to file any Florida tax forms?

Thanks so much for your help. tongue laugh

Comments(2)

  • linlin17th November, 2004

    In Florida you should be paying intangible taxes in the county the property is in.

  • NewKidinTown217th November, 2004

    As far as your federal income taxes are concerned, the $10K rehab cost is added to your cost basis and recovered through depreciation.

    Your accountant can give you specific details.

Add Comment

Login To Comment