Residential rental properties play a significant role in the economy of the United States, as they provide a valuable source of living accommodation for those members of society who either cannot afford their own home or who choose not to do so. In 2019, there were 43 million rental units in the United States, indicating that there are large numbers of taxpayers who own rental dwellings and must report their rental activities on their tax returns.
This course reviews the general principles that apply to residential real estate activities, and it extends the practical application of these rules to a broad range of situations of different types such as part-personal use, part-dwelling use, and part-year use. Also discussed is the application of the rules to dwellings of different types such as condominiums and co-operative housing units. The methods for calculating depreciation in these different scenarios are presented, together with the rules and exceptions that apply to the deductibility of losses from rental activities.