All Forum Posts by: Pandu Chimata

@Brandon Hall, Thank you for the input. What do you mean filing partnership return ? We both are on the title - 50% property on each person.

Thank you for the response Darlene.

 Thank you ! Are you saying carrying costs like taxes, insurance and utilities will be deducted this year and the construction expenses should be deducted when the property is sold.

We are two partners so we should be sharing the cost by half, right ? when filing the tax returns ?

We bought a property for flip last year and we have completed all the work last year but the house is still on sale. All construction expenses are incurred last year only but the house is still on sale. 

Should I be filing all my construction expenses this year or should I wait till the house sold out to file the expenses which means next year ?

Please advise.

Hello Investors,

I am exploring a property in La Quinta city and in the Community called Starlight Dunes Home.  It's in the north of La Quinta.

Does any one provide feedback about this area and/or the community. I would like to know about the class of people/family live around that area, school districts, community rules for short term rentals, if you are aware of this community.

I am exploring all options of 1)Flip 2) Buy and hold for short term/long term rental.

Thank you for your advise. 

@Andy D. Thank you for the insight. Yes. if the tax bracket changes due to less income things may change.

Hello everyone !

I heard that we can/should claim depreciation (if available) on the rental/business properties every year. Obviously, this will help paying less or no taxes at that time.

However, when you sell the house,  you have to pay taxes on the larger sum since the depreciation amount is added to your gains (assuming the house was sold for a profit).

Then how this is going to help real estate investors unless you use 1031 to defer the taxes ? 

Any thoughts ?

Thank you for the response.

Another question If I buy a second home with 10% down payment, can I rent it out and treat all the expenses as business expenses ? Obviously, I will have to show the profit/losses also.

@Albert Bui - Thank you for a clear explanation. This helps. 

Knowing this information, I should be planning for 10% down payment. 

So another question - since it is going to be 10% down, (not 20%), I should be paying PMI also, right ?

How is the typical PMI percentage ? Does it change based on any factors ?

Ok ! Thank you for the update. I am sure we will not be able to live there since that place will be far away from my location.

However, if I buy nother house close by and if I can move into that house,then I can be eligible for a FHA loan ?