All Forum Posts by: Isaiah Tademy

@Isaiah Tademy 

Do you have a CPA that specializes in real estate taxation? Real estate has so many tax benefits and credits available, that I always tell people it's crucial to have a CPA that's extremely knowledgeable in this area. This would be an excellent question for them. I have worked with a number of great CPAs over the years and would be more than happy to provide you with recommendations if you'd like?

What exactly does she do that shes spending a minimum of 15 hours per week on the rentals? Unless she is physically doing constant repairs herself, and doing the painting, and cleaning....I dont see how she will meet the minimum material participation hours. 

I am not a CPA- but I have professional real estate status and it is something that you "self-vet" yourself. You don't need to be a realtor, anyone can get this Tax status and like

Kislay Shah said, the requirements are spelled out. You don't apply for it, it is basically you saying, yes - I fit this and then if you get audited the IRS will ask you for proof. So just track hours and time and you are fine, track every little thing she does from driving, calls, texts, reading, I mean everything just track. 

I have a client that is professional real estate status she did not do a cost seg yet and got $144k last year as a tax deduction on her properties, bc she is prof real estate status that got carried to her combined taxes with her high earning spouse and LOWERED their tax bracket and taxes owed. 

I personally have done cost segs and got HUGE HUGE tax benefits and took it all out so that I paid Zero federal taxes last year while my portfolio grew to over $4mil. So if you can get those hours its the gold mine for tax breaks!  

Best of luck

In order to claim depreciation losses from rental properties against your other income, the properties must meet the IRS's definition of passive income or be classified as a real estate professional. If your wife is actively involved in real estate as a real estate professional, her income and losses from real estate activities can be combined with yours for tax purposes, even if the properties are in your name.

However, the IRS has specific criteria for qualifying as a real estate professional. You and your wife must meet the following requirements:

1. More than 50% of your personal services must be in real property trades or businesses in which you materially participate.
2. You must perform more than 750 hours of service during the tax year in real property trades or businesses in which you materially participate.

If your wife meets these criteria, you can potentially offset your insurance income with the rental property depreciation losses.

It's essential to work with a qualified tax professional to ensure that you are meeting all IRS requirements and to accurately calculate your depreciation and losses. Tax laws and regulations can be complex and subject to change, so professional guidance is crucial for making informed decisions.

@Zachary Bradigan - I am doing something similar to this as we speak. I recently bought a 15 unit mobile home park that was 65% occupied. The park consists of all older homes (2 of them were purchased with the park) and the park was pretty run down. I quickly began making improvements to the park itself and stumbled upon 3 FEMA trailers that were either brand new or very lightly lived in. I bought them and am in the process of moving them to my park and setting them up as Section 8.

I am in an area where the FMR far exceed what I could rent them for privately, and given that my lot rent includes all utilities except electricity, the Housing Office says that I should get very top dollar. This means an extra $350/month per home. I spoke with a few different local housing authority offices and made sure I got the same information from each one, because I shared your concern that a mobile home would not bring the same rent as a traditional house.

I hope this helps, but at least in my area (which is Southeast Texas), mobile homes are no different in the eyes of the housing authority. I will post an update in a few weeks once I get the houses set up and hopefully rented through Section 8