All Forum Posts by: Michael Bertsch

@Taylor Brugna can I use the De Minimis safe harbor for this?

Caleb Heimsoth thanks for the reply. I want to deduct the actual cost of my phone which was around $800. I don't wanna have to depreciate it over 5-7 years.

From what I understand, a cell phone is not listed property and you do not have to keep track of personal/business use. What I would like to know is can I deduct the whole purchase price of my cell in a single year using the De Minimis safe harbor?

Taylor Brugna great! After all my operating expenses and depreciation, I should have a lot of paper losses to deduct on my w2. I really appreciate the advice.

Taylor Brugna if you used a HELOC for the down payment on a rental property, can you deduct the HELOC interest along with the traditional mortgage interest? If so, do you record the HELOC interest in "other expenses" on schedule E or combine them on "mortgage interest" section?

Lance Lvovsky thanks! I'll definitely do some research on it.

Can I deduct my HELOC interest on my schedule E? The HELOC is on my primary home and I have used the money for investment properties nothing personal. From what I understand, most people deduct it on their schedule A so they can bypass the passive loss rules. I will not be itemizing my schedule A because I will get more back with the standard deduction married filing jointly. I would like to deduct it on my schedule E so I will get a larger paper loss to go towards my W2. My w2 income is not over $150k so I should be able to take advantage of all my losses up to $25k. Also, can I use the home office deduction if I have a loss after depreciation and all other operating expenses? If so, does it go under other expenses on schedule E? You guys are awesome on here and I would appreciate any feedback! Thanks

If I were you, I would remove everything. Install the fiberglass tub, new drain/overflow, single handle mixer valve, and fiberglass surround. Be sure to pour a mortar bed under the tub. This is very important. It will keep the tub from cracking later down the road from tenants standing on it. If you are handy and have the tools, it will cost you under $1000 doing it yourself. Also, you can deduct everything the same year using the de minimus safe harbor. You have to keep everything under $2500 in order to use that election though. Good luck with everything and if you have any questions shoot me a message.

Yes, you can deduct all interest you pay on the HELOC. You will deduct it on your schedule A 1040 which is a very good thing. It is not affected by the passive loss rules. Now, the mortgage interest on your investment properties is deducted on your schedule E.

Awesome! Thanks guys