All Forum Posts by: Matthew Apostol

Hello,

In 2018, I had a contractor do a substantial home improvement project to my town home ($29k worth).  The project included replacing the roof, replacing all windows, and installing aluminum siding to the exterior.  At the time, the town home was my residence and NOT yet a rental property.  I took out a loan to finance the improvement.  I paid interest on this loan in 2018 and 2019 before the loan was fully paid off in 2019.  Total interest paid in 2019 was about $475.00.

That town home became a rental property on August 1st, 2019.  I did not claim anything related to this improvement or the loan on my 2018 tax return.

My question is, how should I address this home improvement on my 2019 federal income tax return?  Should I:

1) Depreciate the cost of the home improvement?  Or...

2) Deduct the interest I paid in 2019 on the loan I took out for the home improvement?  Or..

3) Something else that I am not aware of?

Thank you in advance!

Hello, 

I am active duty military, currently stationed overseas.  I own a townhouse in Northern Virginia and I am about to become a first time landlord.  I am not using a Property Manager. I was reading over the Virginia Residential Landlord and Tenant Act (VRLTA) and I saw a part which read:

"B. Every nonresident property owner shall appoint and continuously maintain an agent who (i) if such agent is an individual, is a resident of the Commonwealth, or if such agent is a corporation, limited liability company, partnership, or other entity, is authorized to transact business in the Commonwealth and (ii) maintains a business office within the Commonwealth. Every lease executed by or on behalf of nonresident property owners regarding any such real property shall specifically designate such agent and the agent's office address for the purpose of service of any process, notice, order, or demand required or permitted by law to be served upon such nonresident property owner."

I am not really clear on what this means. Do I have to designate someone in VA to serve as an agent? What is the definition of an "agent" according to the VRLTA? Can this person be a friend? Or does he/she need to have some sort of realtor license? Do I have to designate this person in the lease? I have a friend who is willing to help out but he is skittish about being named on the lease as he fears it might legally bind him to something.

I would appreciate it any experienced landlords in VA can shed some light on this subject. Thank you!