All Forum Posts by: Matthew Cater

I have some questions:

1. What is the most common bookkeeping software for a real estate investor? QBO?

2. How to report expenses for house hack when you live in the property (1 bedroom) and rent out the other 2 bedrooms? Do you split the utilities?

3. When you move out of the house hack into another owner-occupied (property 2) and fully rent out property 1, do you capture 100% of the expenses for property 1?

4. Can you please explain startup costs? My understanding is that anything related to the purchase of the land/building should be capitalized and any other costs unrelated can be startup costs? You can then expense $5,000 and then amortize the remainder? Is this when the property is ready and available for use?

5. Is house-hacking considered a business activity or investment for IRS purposes?

6. Does house hacking income get reported on Sch C or Sch E or does it matter?

Thanks again for your tremendous efforts in this forum!

Some general questions about house hacking:

1. Tax question- If a person purchases home 1 as an owner-occupied personal residence house hack and then moves out the next year and purchases another owner-occupied residence, is the taxpayer eligible for the homeowner exclusion rule for gain when it comes time to sell the property?

2. HH Question- If my house hack is reported as Schedule C business, is it recommended to have a separate bank account for my house hack and personal? Can they be two separate accounts at same bank? What about if I setup an LLC, should I have a separate bank account for that?

3. General REI question- how scalable is house hacking and/or real estate investing for a professional with a full-time job?

Thanks so much in advance!

Can you give me an understanding of the tax implications of house hacking? (Buying a single family and renting it out).

What happens if you move out of the owner-occupied house into a new owner-occupied house hack?

Thanks for your generosity in answering all of these questions.

Thanks so much Dmitriy and Dan for the advice!

Hi Bigger Pockets community!

I'm excited to join this awesome community. It seems this is the place for a community of like-minded folks with a wealth of knowledge to share. I'm brand new to REI and I am excited to learn!

Best,

Matthew