Rent money and taxes - help, please?

I don’t think anyone else mentioned this (on skimming the thread) but bear in mind the depreciation affects the profit figure when you do sell the house.

Say you and your brother bought the house for 100,000 (or maybe you inherited it and it was worth 100,000 at that point).

If the depreciation is 3,000 dollars, then your basis in the house, when you sell, is 97,000 dollars.

If you sell it for 105,000 dollars, then your profit is 8,000 dollars (split between the two of you, 4,000 apiece).

It does get complicated - I’m more knowledgeable about taxes than the average “civilian” thanks to a mother who was a tax specialist - and I’d hesitate to do my own taxes in this situation ;).

If your person at H&R Block is one of their more experienced staffers - and they DO have them, that’s how Mom got her start and she worked there for many years - they should be able to handle it. You just don’t want one of their people who took the training course last fall and thinks they know how to use the software. Hell, I worked there part time in high school filing papers and I caught mistakes on the part of trained preparers with several years experience.