All Forum Posts by: Jamie Engledow

I agree with Natalie and Scott.  Note that if improvements, these will be capitalized and increase basis and probably increase market value of the property as well (not necessarily, but usually).  This will be a positive to the bank you approach for a loan.

The previous posters responded same way that I would, penalties and interest. I have had no personal experience, but from what I see the major reprocussions happen waaaaaay later than a couple of months.
  

Does your schedule C activity have any relation to purchasing real estate?

Research like kind exchange to see if it fits.

Yes, your accountant and other posters are correct.  You are limited to a $25,000 rental loss (for passive) which begins to phase out at $100,000 and is totally lost for current year at$150,000.  But it is not all bad as you can carry forward.  It is what it is, but it is not a horrible position to be in.

Since it was done before property was available for rent you should capitalize and depreciate.  Once it is set up as rental, expenses of minor repairs and maintenance are expensed while improvements are capitalized.

you are correct that the loan is increasiing and they not have to pay doen principle and interest on a higher amount.  But in doing the refinance, it has allowed them to tke out equity in the property as an additional loan, facilitating the purchase of further properties.

As others have said, square footage is key.  Use square footage of rental space to determine percentage of total building to allocate to schedule E expenses.

Even though I signed in 30 minutes before start, somehow I was unallowed due to # of participants to join in on commenting.  I eas bummed.

za death definatly makes things difficult. My husband of 22 years died and even though we knew everything was  50/50 we had other complications such as being divorced the 20 months prior to his death even though he resided in my house.