All Forum Posts by: Donna Stern

The CPA would need permission to have the tax software pay in your taxes. They usually use some third party bank and I don't like that idea.

I don't usually advise clients to do that. I send them the vouchers or tell them to pay it online.  You should have control over your money not your CPA.

Thank you

Donna

I agree with Justin and you need to talk to Executor. If this is an estate and not a trust it will have to be probated in court. When hearing is set you will be able to say your thoughts, but the court will make the decision about disposition of the assets and the Executor has to do what the court says.  If there is no cash available, most likely the house will have to be sold because there will be estate and court costs and there will need to be a source of cash.  Only if there was a trust would your grand parents have a say.  They could have directed what gets done with the assets.  I suggest you do consult with an attorney because he or she will need to protect your interest and rights.  This is a complex situation and hard to answer properly without all the facts. You are welcome to reach out to me if you need further information.

Thank you for the question LOL

If it can apply to what you are doing and help in the business, I would take a deduction due

to the direct relationship.  I have a property management company that sends their employees to an education conference each year. They are educated on good property management skills, and the cost is deducted from the income of the property they service on schedule E of the client.

If tools are small and under $2500 and may have a life you can elect deminis safe harbor election which allows you to take deduction for these costs or assets purchased, like appliances, etc.

If tools minor, then you can just add to supplies. If all properties are reported on one tax return it does not really matter which property you deduct it on. It all washes out in the end.

If you take tax deduction, then no it does not get added to basis and this type of property would only have a 5 year life, never 27.5. 27.5 is for major improvements to property or cost of the building portion of the purchase of the property.  Land portion it not depreciable.

If not a rental property activity, then those costs would only be deductible at the sale of the 2nd home. They would be considered part of basis of the home which would be price you paid for the home, plus those closing costs at purchase plus any major improvements you made to the property of the during the time you owned it.

When you sell, the above would be your cost basis, you then do get to deduct the selling costs at time of sale.

Yes...this is deductible... Depending on tax forms you file you can put it on schedule C or E. But would need more information.

Would anyone be interested in an Open forum for Tax Q&A through zoom. I know end of tax time, but still can be helpful.

Feel free to contact me if you want me to organize a zoom group session.  Let me know the best way to get in touch with interested people.   Once I know people are interested I can set a date and send out zoom link if that works.

Great information

I am a CPA and was just working with a client who sold her mobile home park. Come to find out her security deposit listing was wrong.

Tip: Very important when purchasing a property with more than 1 unit to verify the security deposits transferred to you by reviewing every lease and making a worksheet listing all the details to make sure escrow credits you the correct amount of those funds which you will later need to pay out to the tenant when they leave. Then if you are using a rent software the information is then tranferred properly.

I am happy to answer any questions about on boarding a new property

Donna L Stern CPA