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 about 4 years ago on . Most recent reply presented by

User Stats

7
Posts
0
Votes
Reece Teramoto
  • Rental Property Investor
  • Massachusetts
0
Votes |
7
Posts

Deducting business-like expenses for REI while having a W-2 job?

Reece Teramoto
  • Rental Property Investor
  • Massachusetts
Posted

Summary: For those with a W-2 job but that own 1 or 2 rental properties, are there any expenses that you declare that aren't to one specific property, but are meant to support / grow your real estate investing in general?


A bit more of an explanation...

I've been reading a bit about taxes lately ("The Book on Tax Strategies" by Amanda Han and Matthew MacFarland was a surprisingly interesting read), but one part that I'm a bit confused on is when one can begin to take advantage of the non-obvious deductions for rental properties. 

I have a W-2 job but am currently closing on my first property in the next month and plan to add 1 or 2 more to my portfolio by the end of this year. All properties will be out-of-state. 

Besides the standard deductions like depreciation and mortgage interest, there are other more business-like expenses that contribute to the growth of one's real estate portfolio. Some examples:

  • Using a home office for communications with my property manager, agent, etc.
  • Attending a real estate conference or training

I've been reading on various forums that REI at this level (just owning a few properties on the side but having a W-2 job) is considered an investment and not a business, so the types of deductions mentioned above wouldn't apply. But others seem to say the opposite.

Does anyone who owns a few properties (not in any business entity) while having a W-2 job take advantage of deductions like the ones mentioned above? 

Loading replies...