All Forum Posts by: Mason Kimball

No problem!

I am on a similar path as yourself in trying to find my first house hack except I am looking for a duplex not renting by the room.

Best of luck!

So if you’re doing a by the room house hack, you would only be able to depreciate the area that is exclusively occupied by the tenant. So that does not including common areas.

Also, don’t forget to separate the value of the building from the value of the land, you cannot depreciate land. You can do this by using the replacement cost of the building from your insurance appraisal

Let me know if you have any other questions!

Yes that is correct, you would be taxed at whatever your marginal rate is. Don’t forget to take all deductions you qualify for though. If you look at Form 1040 Schedule E, you’ll see examples of some expenses that are deductible at arriving at your net rental income/(loss)

Hi Cam,

Here is an awesome BP article on the tax considerations of house hacking: https://www.biggerpockets.com/...

Let me know if you have any additional specific questions and best of luck with your first house hack!

Mason

Hi Jody,

I don’t have any experience with flipping, so sorry can’t help there. I came across this post in one of my keyword searches for tax

Just so you know, you only have to keep the property as your primary residence for 2 years to defer capital gains tax (up to $250k/$500k depending on filing status), not 3 years.

Best of luck on your first flip!

Mason

Following for the replies

Beginner investor, following for responses on how people handle this

@Eamonn McElroy

Another accountant that seconds this. But we also have to hold ourselves to higher ethical standards if we want to maintain CPA licenses.

But yes, you are indeed committing felony perjury by saying you are exempt when you are not and could (but granted, probably won’t) face jail time of up to 5 years.

Best of luck :)

I wanted to collect as many data points within Montgomery County and Bucks County as possible. So feel free to share your average CoC return wherever you are within the area.

I haven’t pinpointed one specific area yet. I’ve had a hard time finding duplexes in general outside the city limits, so I don’t want to narrow my search area too much. I have a pretty wide search radius and I’ll consider any area as long as the deal cash flows and it’s low crime and good schools.

Some areas I’ve been coming across a lot within my criteria though are Lansdale, North Wales, Glenside, Havertown, Abington, and Ambler.

@Luis Vivas

I don’t really know your local market but I can give you some feedback on withdrawing from your 401(k). If you’re referring to the first time homebuyer 401(k) early distribution penalty exception be sure you know all the intricacies of that rule.

Would be happy to help if you have any questions about that.

Best of luck!

Mason