All Forum Posts by: Account Closed

A frequent CPA contributor on BP's thoughts on it below.  I guess I always thought deducting taxes was allowed because it was a business expense not because you could deduct them at Fed level.  

If he's right this sucks and f u trump. 

See our complete thoughts on the H.R.1 bill by clicking this link (and feel free to share it!).

Two big wins are:
1. Elimination of the Alternative Minimum Tax.
2. Reduction in in tax rates for C-Corps to a maximum 20% and most S-Corps and LLCs to a maximum 25% tax rate.

Two big losses are:
1. Loss of itemized deductions (state & local income taxes and a $10,000 limit on real property taxes).
2. The Section 121 Exclusion which allows you to exclude capital gains on the sale of your primary residence has been modified to make it harder to claim.

@Colleen F. if you own real estate and rent it out you can still deduct the property taxes as a business expense from your income generated....and that is regardless of whether you live in NY or Kansas, doesn't matter.  i don't see anywhere that writing that off as business expense is being touched.  If you're a home owner in high tax state, then yes....you're going to get hurt by it.  but doesn't affect your investments. i don't think anyway. 

@Shaugn Lindley , @Carl Fischer  already tons of info out there.  shaugn, 500k is for NEW purchases only.  

https://www.wsj.com/articles/republicans-stick-wit...

http://www.reuters.com/article/us-usa-tax/long-awa...

https://www.nytimes.com/2017/11/02/us/politics/tax...

this article was extremely positive for REI'ers....i hope he's correct in details of new plan:

http://fortune.com/2017/10/02/trump-gop-tax-plan-mortgage-interest-deduction/ 

So the new tax plan was finally unveiled and I noticed it curtails deductions for business interest, but there are "special rules" for real estate and small business.   Can anyone confirm....are we still going to be able to deduct interest on a mortgage for investment property, as a business expense?  

@Chris Jensen could you help explain how you would use a HELOC to facilitate BRRRR? I can't seem to figure out how this would work....since you won't own the property outright how would you do a cash out refi?

@Stacie T. I'd be curious to hear from Linda on that one....i'm not as sure about LLC implications. I'm 99% sure though that if for example I owned 3 rental properties (without an LLC on any), that the IRS considers all of that to be "passive income" and so yes, i could use losses from 1 of them in order to offset the other 2...basically they can all be reported together. I think that's right, not sure about LLC stuff though and would love to hear Linda's thoughts cause she certainly would know better than I on all this.

@Stacie T. what I've learned is that you CAN depreciate the asset in order to offset your total rental income you need to report.  But what you cannot do is use to offset all your other income from your 9 to 5 day job.    

@James McCormick I appreciate it!

I'm reading that part of the proposed tax reform is to eliminate 1031's.  http://www.foxbusiness.com/features/2017/06/13/103...

Anyone know more about this?  How likely do we think this is?