All Forum Posts by: Ben Trageser

 Thanks Denver! I would highly recommend having someone who specializes in real estate tax help you.

Thanks Denver! Happy to have a conversation.

Yes, you are correct. The $450,000 carryover basis (Line 25 of 2014 Form 8824) is the foundation for your current Line 18 calculation. Adjust this amount for improvements, closing costs, and depreciation to determine the final adjusted basis for the relinquished property in your 2024 exchange.

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 Not too far from me! Yeah it really depends. NJ housing can get quite expensive, whether down the shore or near the city. I recommend doing your research into areas you like, watch the markets and determine what you want to go for. From there, you'll be able to zone in on certain types of properties (multi-family, apartment buildings, shore houses) and go from there.

When opening up a STR, you want to consider a number of items. I broke them up via the below:

Entity Setup and Tools: Expenses related to setting up your business entity (e.g., LLC formation fees) and purchasing software tools or research materials can be deductible as startup costs. However, these costs must be directly related to your business.

Market Research Travel: Travel expenses for market research, meeting realtors, and property inspections can be deductible if the trip is primarily for business purposes. This includes transportation, lodging, and 50% of meals.

Primary Purpose: If the trip is primarily for business (e.g., more than 50% of the trip is dedicated to business activities), you can deduct 100% of the travel costs (e.g., airfare, rental cars). For mixed trips, only the portion of expenses directly related to business is deductible.

Allocation of Expenses: If the trip includes personal days, you must allocate expenses. For example, if you spend 4 days on business and 3 days on vacation, only the costs for the 4 business days are deductible.

Weekdays vs. Weekends: The IRS does not differentiate between weekdays and weekends. What matters is the primary purpose of the trip and the allocation of business vs. personal time.

Spouse’s Travel: If your spouse accompanies you, their travel costs are only deductible if they are an employee of your business or have a bona fide business purpose. Otherwise, only your expenses are deductible.

100-Hour Rule: The 100-hour rule for active participation in rental property management applies after you purchase the property. Tracking hours before purchase is not necessary for this purpose, but it’s good practice to document all activities related to your business.

Where in NJ are you located? All dependent on location

@Denver McClure You may have some good insight into this

@Denver McClure and @Jeff Nash are both located in the area. Would be good to connect!

@Denver McClure