All Forum Posts by: Pete Tallerico

Hi everyone!  As a total newbie, I'm trying to figure out this game and am confused about how much and when do you have to pay income tax on a rental property.  If I collect $1000 in gross monthly rent, that's $12,000/year rental income.  From what I've read, I can deduct operating expense, depreciation, and mortgage interest (but not principal?).  On the webinar, posts, and articles, everyone calculates cash flow by deducting expenses which include principal AND interest (among other things).  Can we do this?  When do we pay income tax on the income generated on the rentals?  Any help would be greatly appreciated!

Hi everyone. I've read a lot about the many tax deductions you can write-off with investment properties (ie: depreciation, travel, cell phone, repairs, home office, property mngt to name a few). Do I need to establish a business entity (LLC or corp) for my investments to be able to use the many tax benefits that are available to investors? Is simply buying an owner occupied multi family enough to constitute the label "real estate investor". Just curious. Thanks guys in advance for any input!

Pete

2-3 unit multi. Thanks for the reply Steve.  

Hey guys! Just need a little clarifying. If I purchase a multi-family in my own name, can I still use many of the tax deductions (repairs, home office, mileage, utilities, internet usage, etc) come tax season. If so, how would I establish that I'm purchasing a property as an investor if not via some sort of business entity. I thought tax deductions were an advantage of forming an LLC. New investor here.

Thanks, Pete

Thanks for the warm welcome everyone!  

Hi everyone! My name is Pete Tallerico and I live in Greenwich, CT which is about 35 mikes north of NYC.  I'm brand new to the website and to real estate in general, but am very eager to learn, meet new people, and start something different and (hopefully) rewarding. After reading Rich Dad, Poor Dad, I wanted to find out more about real estate investing and found biggerpockets.com after a little web searching. I am a Speech/Language Pathologist, and though I love it, I also love new ventures. Here's to new adventures!