All Forum Posts by: Joseph Palmiero

Unfortunately, the land will be considered inventory and placed on your balance sheet and cannot be expensed until sold.

1) Rental Income is not subject to Self-employment tax in most cases.

2)  Do not use an S-corp to buy long-term rentals.  Using a corporation will limit your options when trying to exit.

3)  Issuing W-2s to owners is not needed and/or advised for long term rentals.

A little more information is needed. What are you hoping to achieve? 

You can depreciate the entire remodel over 27.5 years starting in July 2023 which is the month that you placed the rental into service. Appliances, carpet, and land improvements will be eligible for bonus depreciation in 2023.

It could apply to both depending on the timing of the cost seg and renovations.

 If you are repairing a small portion of the roof you can generally expense the entire amount paid.

Assuming that you are looking to buy and hold, I would open a seperate LLC or buy the properties personally. You want to keep real estate rental activities seperate from your active business for various tax reasons.

Hours spent on STRs generally do not count towards real estate professional status.  

It depends on how much you paid for the property and if you will be able to use the loss generated from it. 

It would ultimately reduce your taxable gain.