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Updated about 3 years ago on . Most recent reply
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How to find a good real estate CPA in NJ?
For those of you investing in south Jersey, does anyone have a recommendation for a CPA or any advice on finding one?
Most Popular Reply
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@Deniqua Antoine
Your profile mentions that you are a realtor + househacking.
If you are a realtor, you want to have a conversation to see if you are eligible for Real Estate Professonal Status(REPS).
Below is a sample of expenses that realtor's are eligible to deduct - MLS Fees, Home office, Mileage, Business Gifts, etc
House hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.
You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion
- Basit Siddiqi
- [email protected]
- 917-280-8544
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