Need help on taxes on a investment property?

I was just wondering what do I need to file or do.. if i have a rental property that I own that i am currently renting and have been for 2 years and a new lease will be signed at the end of this month. I lived in the house before i rented it. Do I have to pay capital gains taxes yet? I also am getting $400 less than what my mortgage payment is. So I am actually losing money but I can claim the interest on the house loan,correct? Can you give me insight on my situation on what i need to to do. I usually do taxes myself but maybe I should have someone do it this year. I also live in in Fl. if that makes a difference. Thanks in advance for your insight

Yes, the investment must be accounted for on your return. You need to complete Schedule E for the Rental Property. The interest may be claimed. It may be a loss, it just depends on the property value and income vs costs etc. Capital gains tax would be an issue if you sold the property for more than you paid for it and you did not live in it for 2 out of 5 years.

IRS Code Section 1031, which rolls the gain from the sale of investment property into its replacement property, and Section 121 which provides that all or a portion of the gain from the sale of a residence that you have occupied for at least 2 of the last 5 years also might help you out. Spend the $175-$350 and hire a CPA or Enrolled Agent to do your tax return!

You won't have to pay capitol gains tax until you sell the property. You will be able to claim a loss on your property since you are losing $400 a month on it. You can still claim the interest on the loan. Any repairs to the house are deductible,too. I am in the same boat as you are and decided to use turbotax this year. It goes through everything possible and does the necessary forms for you. (Just a little added comfort).