All Forum Posts by: Bill Willis

Afternoon,

I recently purchased another single family home to live in, but I still have my condo that I own and want to start renting out. I've done a bit a research around LLC's and creating one - (unfortunately, I didn't think to create one prior to buying my condo...blah...)

I bought my condo about 8 years ago and have been diligently paying my mortgage payments. This month as mentioned above, I purchased another home to be my primary residence. My plan is to rent it out my condo next year. However, I would like to write off my business expenses for this and treat it is an actual business.

My plan was to formulate an LLC and roll my condo up under that through a title transfer. Unfortunately, when I called my mortgage lender they told me, if I went this route, it would trigger the due-on-sale clause. This would put me in a very challenging position to have to completely repay this mortgage.

My question: Since transferring my rental property under my planned LLC would not be an option. One of the options I considered was utilizing an umbrella insurance policy for protection. However, with this:

1.) How am I able to write off business expenses that are incurred through my rental property if I can't use a business type entity? 

2.) Also, am I able to get a business credit card (expenses) / bank account for rental (deposits)?

I feel kinda stuck.. Help? lol

Thanks for the future feedback everyone

-Bill

Morning,

Thanks Wayne

-Bill

Afternoon BP,

I am new here and excited to be here and learn from everyone.

Quick question, I am currently living in a condo which I own, and I am planning to rent it out in the future. Now, my AC recently went out and is going to require a replacement (around 5k to 7k depending on the brand I select). I am planning on moving out/buying a single family or duplex (not sure) in the next 3 to 4 months. If you're worried about how I've been keeping cool - I’ve been using an indoor AC unit which has been working well for cooling, but only cools 150 sq. ft (12%) of my place lol.

So, my question is:

1.) Can I replaced it now and after I rent out my place apply the depreciation? – Meaning I am currently living it, buy the new unit/have it installed then I’ll move out and rent it out, then apply depreciation.

OR

2.) Is it better to wait until I’m fully removed from my soon to be rental property, buy the new unit/have it installed, rent it out then apply the depreciation?

Many Thanks!

-Bill