All Forum Posts by: Matt Lenzi

According to this fairly easy to follow decision tree from H&R Block...

https://www.hrblock.com/tax-ce...

... I should file schedule e, and my income is non-passive so I’m not limited in deducting loss against other income.  

@Lisa Graesser Thanks!

@John Underwood. Thanks John-  I’m definitely not offering anything extra, but we do obviously clean / turn the sheets after each guest’s stay.  And we fall under the less than 7 day avg rental for sure.  I usually try to take a stab at doing my own taxes, but maybe I’ll find a CPA this year.  I’ll do some digging on whether I can deduct those losses against  other income (not a designated real estate pro, but my wife is thinking of getting her real estate license).   I do remember reading about carrying the loss to future years but I thought that was for passive income only.  

@Luke Carl Ha!  I kind of figured that.  It seems to be the case so far.  Part of my reasoning for Schedule C is the active vs passive.  I could be completely confused on all of this, but if I can deduct the huge loss from the airbnb this year off my other income sources, it would help out tremendously!  

Hi All! Still trying to lock down a tax pro who is familiar with the STR strategies, but in the mean time- I've got some questions. I just started my AirBnB, it's a full time investment property. According to most everything I've read, I'll be filing schedule c on taxes. It is my understanding that I will not be subject to self-employment taxes because I don't think I offer any substantial services... Still not sure about that one.

With that being said, we just finished the rehab and furnishing.  I’ll have a couple bookings this month, but tax year 2019 will be a huge loss with all the expenses.  Will I be able to deduct the loss against my main source of income? As I understand, schedule c is active income not passive, so if I am able to deduct losses from this AirBnB against other income AND not pay self employment taxes, that would be great!  Any help on the subject is greatly appreciated! 

Thanks for all the info!

@Spencer Cornelia great points!  I agree 100%. Thanks

Thanks @Nathan Hui! Using conservative numbers, the property is at a 6% cap rate.  I should be getting the last 12 months of income and expenses soon to get a better idea of what I want to value the home at.  And yes, $3750 is pretty high for expenses in this particular case.  Once I get more info, I’m sure I’ll have more questions.. but this site has helped me tremendously! 

Hello-

I'm looking at a 4 plex with an asking price of 950K (California!) and annual rent of roughly 77K. As I read through the forums and google, I'm seeing 1% rules for cash flow and 50% rules for NOI and expenses. What's a good way at determining value of a property like this? I.E. how far off from asking does this turn to a good investment.

What I can add is that the property is in decent condition and the rent is below market value.  I’d guesstimate the market value of rent is more around 90K annually.  Utilities are passed through and I’d be managing myself, I live right up the street.  I’m a total newbie to all of this, any advice is appreciated!

I am close to entering in contract for an investment property and I’m considering a 1031 exchange.  Most of what I know about 1031 is what I’ve read on BP and various searches.  I’m curious about how you find someone to do the exchange, and what’s a ballpark cost.  My net profit should be 50K and ideally I’d like to avoid capital gains, but not sure how much an exchange runs.  Anybody have any recommendations for an intermediary?  THANKS!