Legal Question in Business Law in Illinois
I am renting now and my only income is through the jfull time ob I have. I am expecting a pension payout from my previous company. This payout will be fully taxable if i cash it since i am younger than 59. I would like to use this cash for downpayment to buy a house as an investment for rental income. I know i have to declare the rent as income but can i deduct the downpayment and mortgage payments against my regular income including the pension payout?
Thank you
Nader
Asked on 2/02/14, 1:31 pm
1 Answer from Attorneys
You need to see a tax counselor to set up your purchase property. Normally in a true rental investment property you report rental income as income and mortgage interest as an expense. You can't report mortgage principal or the downpayment. Deductions are different.
Answered on 2/04/14, 2:52 pm
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