All Forum Posts by: Fred Mejias

@Michael Plaks

Thanks for your insight. Just to clear it up I am refinancing my rental property mortgage. In addition, and correct me if I miss read what you stated, are you saying that it is possible to keep the current mortgage and then receive an additional HEL at the 2nd lien postion on the property a total LTV of 80% of the property. Are these 2nd lien positions usually at a higher interest rate. and as long as I use this for purchase and close on a rental property than all interest on loan is deductible?

I am looking to looking to cash-out re-finance my current mortgage. I looked into mortgages and they are anywhere from 70-75% LTV. I was told by a local bank that they can do a Home Equity Loan (HEL) at LTV 80% and the only requirement is the Appraisal Fee. Obviously I want as much back as possible to move on to the next property, but I am unsure how a HEL will be handled come tax season. With the new laws, will obtaining a HEL handcuff me from taking the Interest deduction or if the property is a rental than I can deduct the HEL because it would be looked at as a business expense? Thanks for the help.

@Ashish Acharya so on the second part to my question, how do I classify my expenses and improvements on the property over the last 6 months, or for last tax season (ending December 2017).  Since I can't necessarily claim it on this tax season, will it have to wait until next year and how will it be classified on my taxes.  BTW thanks for the insight, these are definitely questions I will pose to my tax professional. 

I purchased a rental property, but have been improving it for the past 6 months. (out of state property and I have contractor issues).  However, I hope to rent in April.  Is now to early to advertise for rent?  

In addition, any expenses i paid on property over the past 6 months, how are they applied on taxes? I am totally confused. 

Thanks

@Allan Rosso Great questions and topic. I am in the same boat trying to figure out how this REI is going to translate come tax time. Like you I am trying to find a good tax strategist. If you know anyone let me know via PM.

I just bought a property that I intend on renting. I am rehabbing it now and I am curious how my expenses for the improvement are captured on my taxes? I ask because I previous asked a question about W9 and 1099 and I am getting conflicting information. It seems that if I did this work as a business than I would need W9 from all contractors and would issue 1099 to all contractors. However, as an individual, am I issuing W9 and 1099 to contractor's or are these expenses just marked as rental expenses or possibly added to increasing the depreciation value through improvements? Some insight would be great.  I just started out so I am trying to figure this all out so I know where to keep this information for my records.  An please don't just say get a CPA, I know I need to find one.  I didn't want that from hindering me form getting started.  Thanks for all your help, BP!! 

@Frank Chin I trying to avoid W9 and 1099 if possible. I was reading some where that if I am doing this as an individual and not as a company than I can take all these payments as rental expenses and not issuing 1099's for the work performed.  Than again since I am rehabbing and not renting at the moment, I may have to wait until I actually rent the property to take any expenses. Whether its through rental expense or through increasing the depreciation value (adjusted basis).  Is it cost of labor is rental expenses and the value of the improvement increases the depreciation?  Thanks for all the info!!  

@Kuba F. I doing this project as myself, not as an LLC or business are 1099's still required if working with an independent contractor, individual, or company, etc. ? Thanks for the info. I want to make sure before I start handing out W9's to everyone.

@Frank Chin If I am paying my teenage nephews to do some demo work how do I capture this? I am trying to keep could accounting of this rehab.  For this portion I am not using any contractors. Thanks in advance. 

@Soh Tanaka How do we access your spreadsheet?? Would love to see it and see how we could utilize it in our investments. Thanks in advance.