All Forum Posts by: Ows News

I rented out a property in another state. Due to a number of factors, the rental property has generate losses. According to the IRS, there is a limitation as to how much (loss) you can deduct. The Limit is $25K but if you make above $150K it's zero. If you're loss is higher than the allowable deduction, then you can use it in subsequent year.

For example, the property loses $50K. You're only allowed to deduct $25K of that $50K for losses in 2007. You have an NOL of $25K. FYI: this is the passive income limitation.

My question is say in 2008, you have this NOL of $25K but you sold that property. Can you use that NOL of $25K even though you dont have the property anymore?

Thanks

I live in Boston, and in most foreclosure "auction".. the bank representative shows up at the property and the auction process takes place. The crowd is tiny and it's adminstered/ran by the auctioning company (third party).

I see on t.v. and have heard about "sheriff auction" in which a room is packed with people and the auction process is much different from what I typically see. Again, this is all second hand information about "sheriff auction."

I was hoping someone would shed some light on this issue, i.e. is there two different "auction" process and it really depends on the county? Or does Boston also have "sheriff auction" but I am just missing it somehow?

thanks.

I have a couple of relatively stupid questions. I have a feeling that I know the right answers, but in this business its not about "feelings", it's about facts. Please correct me if any of my statements are erroneous.

1. For rental properties, the interest portion of the mortgage counts as an expense on a tax basis. The principal payment of the mortgage is NOT viewed as an expense.

2. The depreciation method for a condo is the same for that of a single family house. I believed that land is not factor in the depreciation (27.5 years) for condo. If someone could help me out... are they any differences between the depreciation method for a condo compared to a single family house?

3. The basis of a house (tax form) is the amount of the loan rather than the purchase price of the house.

I have a Pink Tub and I need to find a cost effective way to replace it. New Tub will cost a bundle, that is my last recourse if I can't find a better way. I heard about refacing (i.e. painting) but keep hearing that it would only last 3-5 years. I saw an Empire commercial about bathroom "lining..".. what exactly is that?

Thanks in advance.

I think it is impossible to succeed in Bankruptcy Auction. The banks agent will always bid what the loan value that the bank is currently on the hook for. Has anyone been able to go to an auction and ACTUALLY made money (i.e. find cheap property)?

As a side note, I wonder if it's possible to PREVENT the banks agent to attend the auction and bid some ridiculous low figure like $100? Food for thought.

Hi Guys (and Gals),

My radiator is up against the wall. Should I be concerned about fire and other miscellaneous issue?

Is it possible to buy a "conventional"/normal radiator cover for such radiator or do I have to go the custom route?

Thanks in advance

Lets get real here. I agree that Somerville and part of Cambridge (Northern) are great investment ideas but Dorchester and Chelsea are not going to be the "next South End."

South End became popular because it's within walking distance of BackBay. Land is limited in Boston and South End just happens to be a parcel of land that is reasonable close to the heart of Boston (10-15 minute walk from South End to Newbury). Walking distance is very crucial in boston. The problem with Dorchester is that public transportation really sucks and scary; Dorchester is close to Boston when you're driving but definitely not feasible for walking. Ditto for Chelsea.

Somerville is red hot because of its vicinity to Tufts University and its closeness to the red-line. 2 stops away from Cambridge. Somerville should be very ripe for condo conversion, there are insane amount of multi-family house within 5 minutes of tufts, especially west of the main campus. These houses needs a lot of improvement but the job is doable.

I have an unusual situation that relates to tax.

I bought a house in California a couple of years back. I bought the house in anticipation of moving to California. However, for personal reasons, I decided to stay in Boston. I rented the house in California and the property is cash flow negative. To make matter worse, the property was classified as a passive investment, hence I could only use a portion of the negative cash flow to shield some of my annual tax (from working). In other words, there is a limit to how much you can use to shield taxes.

I currently have a home in Boston. I owned that property. With respect to the house in California, my parents have decided to move into it in July. They will not be paying the rent. I am doing this because my parents are in retirement and I want to take care of them.

In other words from January to June, I collect rent from my renter. But after July, I will be.

My confusion is over the tax law that relates to this. Do I classify my property as a "passive investment" for six months and then reclassified it as a "second home." This is stupid question but is the mortgage interest on the second home.. tax deductible?

Thanks.