How to get earned income credit with rental property? |
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Sarchus
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Cash: $ 2.35
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Joined: 08 Feb 2013
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How to get earned income credit with rental property? |
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Any way to get it?
Its just not fair to the kids to hold back EIC and child tax credits just because someone makes over $3000.00 in rent. Hmm..but then property taxes and impact fees are usually not fair either.
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Sat Feb 09, 2013 6:14 am |
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oldguy
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Location: arizona |
The rent doesn't count as investment income (the $3200 limit), rent couns as earned income from a salary and/or a business. So if you are within the limits of the table (eg, $45,060 and so) you are OK for EITC.
quote: 2012 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
$45,060 ($50,270 married filing jointly) with three or more qualifying children
$41,952 ($47,162 married filing jointly) with two qualifying children
$36,920 ($42,130 married filing jointly) with one qualifying child
$13,980 ($19,190 married filing jointly) with no qualifying children
Tax Year 2012 maximum credit:
$5,891 with three or more qualifying children
$5,236 with two qualifying children
$3,169 with one qualifying child
$475 with no qualifying children
Investment income must be $3,200 or less for the year.
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Sat Feb 09, 2013 4:34 pm |
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Sarchus
Member
Cash: $ 2.35
Posts: 11
Joined: 08 Feb 2013
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quote: Originally posted by oldguy The rent doesn't count as investment income (the $3200 limit), rent couns as earned income from a salary and/or a business. So if you are within the limits of the table (eg, $45,060 and so) you are OK for EITC.
quote: 2012 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
$45,060 ($50,270 married filing jointly) with three or more qualifying children
$41,952 ($47,162 married filing jointly) with two qualifying children
$36,920 ($42,130 married filing jointly) with one qualifying child
$13,980 ($19,190 married filing jointly) with no qualifying children
Tax Year 2012 maximum credit:
$5,891 with three or more qualifying children
$5,236 with two qualifying children
$3,169 with one qualifying child
$475 with no qualifying children
Investment income must be $3,200 or less for the year.
Wow interesting and possibly means that the IRS owes me thousands of dollars from a few years back. The IRS and at least three different tax companies also insisted that any amount over $3,200 on line 17 (total income from rentals, royalties, partnerships, S-corporations, and trusts) of 1040 makes one ineligible for EIC and Child tax credit.
Are you saying to use a schedule C instead of E for rental property
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Sat Feb 09, 2013 8:50 pm |
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prioritytaxgroup
Contributing Member
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Joined: 20 Jun 2014
Location: usa |
If someone rented the property at fair market value, the schedule E would include both the rental income as well as the valid rental expenses on line 21 which INCLUDES depreciation. For most individuals, the depreciation pulls the income into a loss...and the loss wouldn't prevent him/her from claiming EIC.
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Fri Aug 01, 2014 8:41 am |
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