All Forum Posts by: Joshua Bowers

Thank you everyone for the information. Time to see a tax accountant!

So if I claim depreciation on the property each year I will have to pay 25% tax on the total depreciation deductions that I took and ~15% capital gains on the equity in my property when I sell (if I want the cash and don't reinvest in another property). 

Just to confirm, you're saying that whether I deduct the depreciation each year or not, I will still be charged 25% on the total depreciation amount over the years of ownership?

Thanks.

@Russell Brazil

I’m trying to decide if I should claim depreciation on my rental property.

The main reason I’m hesitant is that I’m currently a student in a low tax bracket and plan to be in a higher tax bracket out of college and someday when I go to sell the property. My understanding is that if I claim depreciation now, I’ll have more capital gains to pay taxes on when I sell.

My situation:

Currently have one rental property that I’ve owned for 7 yrs and rented for 4 yrs, which rents for ~$23k yr.

Currently in 15% tax bracket.

Eligible for ~$6500 yr in depreciation, but never claimed it

Any suggestions/insight would be greatly appreciated!

Josh

If you had 30k in the bank, a SFH with a VA loan being rented out (currently about 80k of equity), and current income of about 10k + 19k rental income a year while being a student for another 3 years? I want to buy a four-plex to live in one unit, rent the other 3, while I finish school but not sure how to be approved with low yearly income. Any ideas?

If you had 30k in the bank, a SFH with a VA loan being rented out (currently about 80k of equity), and current income of about 10k + 19k rental income a year while being a student for another 3 years? I want to buy a four-plex to live in one unit, rent the other 3, while I finish school but not sure how to be approved with low yearly income. Any ideas?

@William E. That's exactly what I was looking for.

@Brent Coombs I throw my taxes together at the end of the year to include: property taxes paid, interest paid, management fees/advertising, rent income, insurance, repairs, and maint.  Am I missing anything significant? Thanks.

@Benjamin Burket That's a good call, I'll have to make that change. Thanks.

I have a house that I lived in for a couple years, moved, and now it is my first rental property out-of-state. I have a property manager and other than that I'm pretty much hands off.

I'm currently reading a book on rental property and have realized that I'm making a terrible mistake. I'm not running it like a business and not tracking anything about the property including expenses and depreciation. I now know I need to master this before buying another property.

How do I get started with this? Anyone have an excel spreadsheet that outlines what I need to track?

Josh

@Kristopher Hanks Ok, I'll check out both of those resources. Thanks.

@Upen Patel Thank you. Yes, the VA loan benefit is a wonderful thing.