All Forum Posts by: Joshua Thompson

@Sean Rhodes Not 100% but I think you can deduct the portion or percentage of the home that is a rental and deduct that percentage of mortgage pauments. Would love to know the correct answer if you find one! Good luck man!

 Curious on how this turned out.

The way it usually works with a regular rental (Single Family Residence) is you'll input your gross rental income then input your expenses to offset that income. However, since you're house hacking I think that's where things get a little tricky and at which point I would recommend reaching out to a CPA or EA that has dealt with this before. You may get broad advice on the forums because what is right for you won't be right for the next guy. The forums will help with gathering knowledge to speak somewhat intelligently when looking for that CPA or EA.

Try to find one quick man April 15th is coming and most tax preparers are probably in crunch time.

 Nope, that's not something I need, just some clarifications. If there are easier ways to get things done without sacrificing quality I'm all ears. Thanks for your responses!

@Philip C. This is the second time this book has been mentioned. I'll be adding it to the collection that much sooner. Thank you!

@Michael Plaks Thank you for the feedback. I ask because I'm hoping to become a CPA after I graduate and looking for some material to reference.

Doesn't adding all these personal items make the depreciation schedule long and messy? Or is that just the nature of the beast.

The very minimum you'll need the HUD-1 and a CPA or EA with real estate experience that can advise you on all the additional documents you'll need. HUD-1 is a good place to start. They'll also ask you to gather everything you spent on fixing up the property.

 In response to the appliances, does that mean the majority of personal property can be written off at its current value? If so how can we know or where can we find what the IRS considers personal property vs real property?

@Bradford Hancock No problem man and welcome to BP!

@Benjamin Richards

I'm not a CPA but just off what I've learned in my tax classes and working for a CPA I see some issues going on. I would recommend finding a CPA. I understand not wanting to get a CPA at 1 property or even 3 but at 6 do yourself a favor and spend the few hundred dollars for a good CPA that can probably save you thousands in taxes or even sleepless nights due to an audit. 

I have one rental and prepared the tax return on TurboTax before deciding to go into the accounting world and working for a CPA. After having my boss (CPA) look at it, on day one he noticed I paid taxes on roughly an extra $5500 that I didn't need to. 

Good luck man!

@Bradford Hancock

This sounds a lot like wholesaling. If that's the case the forums should have plenty of information on how to successfully do a deal.