Looking for CPA to Work With, First Year With a Rental

[Thomas O'Donnell]

Hello all! I'm looking to speak to some CPA's as I will be needing one for the next tax season. I would also love to learn about new strategies or tips for when it comes to real estate taxes. 2024 will be the first year I am filing taxes with a rental and rental income on my duplex. TIA!

[Basit Siddiqi]

Your profile mentions that you are house-hacking which makes your return a little bit more complicated than just having a rental property.

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.