All Forum Posts by: Account Closed

But just commenting on what @Account Closed was referring to about the real estate professional status. It doesn't look like it will help your situation, since you've already maxed out depreciation and other deductions to offset any income from your properties. What he was referring to about cost segregation enabling you to reclassify certain assets in your property to a faster depreciation life like five years, is not as simple as it sounds. But yes, that would include things like furniture and appliances. The proper way to do it is to have an engineering based study which complies with all of the IRS guidelines.

There is a simpler 'rule of thumb' approach that is a bit more risky, but involves having the receipts and proper pricing of those five-year assets, and creating a new column in your depreciation schedule.

However doing this on any property that you have previously filed taxes on using the straight-line 27.5 year depreciation method, would require you to make adjustments, including filing a form 3115 which all may be much more complicated than Anthony made it sound to be.

I am closing on a new duplex construction next week, what do you recommend I can do to incorporate the cost segregation method.

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For which area are you asking about please

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Greensboro, North Carolina

The good news is if you are married, only one of you need to classify as real estate professional for the tax benefits

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In order to be classified as a real estate professional a few things are needed,

1) You spend more than 750 hours per year as a "material" participant in a real estate business, which could include management, brokerage, construction, leasing, rental and operation

2) You spend more time in real estate businesses than all other businesses(including employment), that you're involved in, combined. If you meet both of these criteria, then you quality as a real estate professional

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It seems that you have stopped adding deductions because your AIG is over 150k, not allowing the 25k reduction. You should consider classifying yourself as a real estate professional, this would allow indefinite deductions on your tax return.

Also, im not sure how long you have held your homes for, but there is something called cost segregation deduction. Meaning, instead of the standard 27.5 straight line depreciation, you can(if done correctly, which shouldn't be too difficult) do a 5 year depreciation for any and all personal items in each of your rental properties.

This is a start.......

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Originally posted by @Daw’Neichell Moore:

@Allyssa McCleery one of he investors has built an empire, with that we had 2 or 3 bank offers that were willing to finance up to 80% but terms weren’t completely favorable so we went an investors personal bank with fixed interest and more favorable terms. The bank saw the instant equity and great deal

Thanks for response earlier. Very interesting so private money lender, most banks give 25 year loans with good interest.

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All Forum Posts by: Account Closed

Account Closed has started 33 posts and replied 171 times.

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