Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply presented by

User Stats

4
Posts
0
Votes
Akhtar Nasser
  • Edison, NJ
0
Votes |
4
Posts

Personal and rental tax separation question

Akhtar Nasser
  • Edison, NJ
Posted

I bought a 2 family house and live in one of the rentals. Renters pay own utilities minus water and sewer. I created a security deposit and a personal account dentoted as a rental income checking account. 

My next move is to either use the debit acct for house repairs and expenses or even get a credit card for the property.

My tax advisor said that I need to show expenses coming from the rental income account. He said you want that number to decrease so he said to pay my mortgage, utilities, repairs from there. Since I will be short on funds there he said to put in money from my private personal account to help pay the difference.

If I am adding money from private personal account to the rental income account then it makes it just as confusing in my opinion, and if I have a vacancy I will then have to change back to paying from my private personal account. My thoughts were that I should  just keep a spreadsheet of my expenses, and leave the rental income alone. 

Ultimately here is the question. Is his advice just bookkeeping or will it mean I can't deduct my mortgage interest and expenses if I pay from personal when it comes to taxes with the system I am using. 

 From this point on I will start paying water, sewer, any repairs from the rental account because that makes sense. But again it seems just to be bookkeeping.

Loading replies...