All Forum Posts by: Mike Landry

Just to clarify...I fill out this years 8582 and those numbers go on the Schedule E.  Last years 8582 shows unallowed losses which are put on this years 8582.

Thanks @Steven Hamilton II and @Daniel Allen.

I just wanted to make sure I wasn't completely off base here.  What she is doing is taking my loss from 8582 and carrying it to the schedule D, line 10.

My schedule E doesn't have any of my carried over losses on it so it shows a profit  which is going on the 1040. 

On my 1040 she is reporting my this year gain and then later reporting the $3000 loss limit on schedule D and carrying over the rest to next year.....

I keep hoping she will tell me she accidentally put it in the wrong schedule or made a careless error.

Worse part is that she owns a title company, is an attorney, a CPA, owns rental property and is a neighbor....ugh.

Hey guys.  I'm at a slight disagreement with my cpa and wanted to gather opinions. 

Is Schedule D ever used for passive real estate losses carried forward?  Does it have any affect.

I'll make up an example.

I have $5,000 rental passive unallowed losses carried forward form 2015.

I have $5,000 rental income for 2016. Assume same property.

Do the losses reduce my schedule E/8582 to $0

OR

Do I report my income of $5000 on my 1040 but than apply the losses to schedule D, which then limits me to $3000?

Does Schedule D have anything to do with passive rental losses from previous year?

For those of you with foundation problems in texas, what year was the house built.  I don't know if the engineers have gotten smarter but I see a lot of foundation problems on houses built in the 80's and prior.  But it seems like the newer ones that have brought in that orange clay dirt don't have nearly as many problems.  Maybe you just need to stay away from houses built pre 2000's? 

I think rental market prices are diverging from the 1% rule.  Prices are going up but rents are NOT keeping up.  Also the prices have slowed their increase and some areas/price points have seen a decrease in the last year or two.  I don't think there is much more room for increasing prices based on affordability: interest rates up, taxes up, jobs down. I'm in the Houston north suburbs.  Not to mention the last couple of years the Tax assessors have been VERY aggressive with raising your appraised value.  I'd rather pay an insurance deductible for a new roof than have to buy a new roof but I do get nervous when those hail storms approach.  I'd be careful if I were an out of state investor in the area and not buying at a discount.

yep. I've closed two deals off Facebook. It works but more people are starting to advertise there. 

What would be your return on equity if you paid it off? Might want to consider that metric too. I figure your roi on paying off a loan is the interest rate you are paying off. But you're right the interest deduction will decrease that even further. The pricipal payment is not cash flow to you but it is to the irs.

Can you do better than 5% return elsewhere with the $35,000? I would say buy another leveraged property, but $35,000 isnt much to pay off either.  Good luck. 

What neighborhood? I think things are pretty seasonal around here. Should pick up soon. 

Let's assume you are in an income tax bracket of less than %25....Say 15%. If you depreciate your property for a year and then sell it you have to pay %25 recapture tax? That sucks, you get to pay %10 more in taxes 

But for higher incomes it helps to defer taxes similar to how a 401k defers. Keyword is defer. I don't believe it helps a much as people think.  You aren't saving $3000, your just not paying taxes on that amount....Yet. 

I don't look at it in any calculations. I also have a net income from my properties after accounting for depreciation. 

Oh boy. Now I'm confused. Her broker actually asks for a statment from each realtor for income to put on the 1099. She gave him this a week ago, not including this sale. She was going to update him this week if needed. 

I'm working on a new cpa. Current person I use is marginal and I don't want to bug them if I won't be using them anymore. 

Great.  Thanks guys.  Makes sense but didn't want to assume!