All Forum Posts by: Priyanka K.

Closing costs are capitalized expenses and become additions to your basis in the property. They wouldn't be simply deducted in year 1, regardless of the month you close in. The same goes for many of the property upgrades you might make.

@jeff cagle: thanks a bunch for the information! This makes sense!! :)

0 Votes

Hello fellow investors!

I am working on a 'Buy and Hold' deal and wondering if I should close in December or January for expenses and deductions as I may not be able to rent it out till next year and thus will have no rental income from that specific property this year.

I have other rental properties and I read somewhere that I can combine all my rental income and all rental related deductions and add them all up as rental business income and expenses and deductions don't have to be from specific property income. All these rental properties are under my name and not any LLC.

I like the deal and would like to close it asap and get some work done during the holidays but don't want to lose out on closing cost related expense deductions.

Any feedback will be greatly appreciated.

thanks,

priyanka

Real Estate Investor and Agent in Dallas, TX

0 Votes

Originally posted by @Basit Siddiqi:

@Priyanka K.

Did you obtain your real estate license to get in the business of making money through commissions?
If yes - then you have a business and may be eligible to deduct expenses on your tax return.

You would be required to file a schedule C.
Make sure to record any expenses that you pay for related to generating money as a real estate agent.

Your tax return would aggregate your income that you earn through your employer, real estate agent business. So your total taxable income may decrease if you report a loss from your real estate agent business. You wouldn't necessarily carry it over to the next year unless you have a net operating loss.(losses from real estate business in excess of other income including W-2)

The only reason I asked if you are getting in the business of making money through commissions is because some get the license just to look at properties on the MLS with no intent of really making money.

@Basit Siddiqi, Yes, i got it to earn commission and not to just look at MLS. I appreciate your detailed response! Thanks much!!

0 Votes

Originally posted by @Victor N.:

In general, you can not carry over the expenses to next year unless they are capital expenditures that are depreciable or amortizeable. If you began working as a real estate agent seeking to produce profit, you may be able to deduct start up expenses and other ordinary and reasonable expenses of operating on Schedule C. This is a situation where you would benefit from a professionally prepared return.

@victor, yes, i want to earn commission as an agent. Thank you for the confirmation!

0 Votes

Hello fellow realtors!

I got my license last month and may not have any earning as a realtor this year. I am looking for ideas on how to manage realtor related expenses that i incurred this year!

Can I deduct realtor related expenses from my W2 income?

Can I carry it over to next year so that I can deduct from earnings next year?

Any other ideas???

thanks for your help!!

thanks,

priyanka

Real Estate Investor and Agent in Dallas, TX

0 Votes

Hello fellow REIs!

I am trying to explore new neighborhoods for 'Buy and Hold' and was wondering if you could help me with my research. What are the factors I should consider? I want to stick to class B neighborhoods for now.

I am a licensed real estate agent so I can pull sales and rent CMAs from MLS but not very sure of others. What are the things I should look for in a new neighborhood and how do I get that info?

I think crime rate, school district, location (proximity to freeways, shopping, grocery) etc. is important, is there anything else I should look for?

Any help will be appreciated!!

thanks,

priyanka

Real Estate Investor and Agent in Dallas, TX

0 Votes

So we are meeting on Nov 17 at Lazy Dog (Addison) at 2pm - https://www.biggerpockets.com/forums/758/topics/63...

Hope to see you there.

If this goes well, we'll try to make it a monthly thing!

thanks,

priyanka

Real Estate Investor and Agent in Dallas, TX

0 Votes

@Maurice D. thanks for spreading the word! Great to see all the interest here!

I am thinking of Saturday, Nov 17 afternoon in Addison. Will post it in Dallas forums soon.

Hope to make it a monthly thing.

thanks!

priyanka

Real Estate Investor and Agent in Dallas, TX

3 Votes

Originally posted by @Maurice D.:

check out some of the RE groups on meetup. I haven't seen much locally here in this area, time to pitch one up in the Dallas forum?

Great idea, will plan something in the next few weeks!

thanks!

priyanka

Real Estate Investor and Agent in Dallas, TX

1 Vote

Are you still doing this? I'll be interested if anyone is hosting any networking event in DFW!

thanks!!

priyanka

Real Estate Investor and Agent in Dallas, TX

0 Votes

All Forum Posts by: Priyanka K.

Priyanka K. has started 19 posts and replied 83 times.

Post: Tax Question - Closing Rental Property in December

Post: Tax Question - Closing Rental Property in December

Post: Year End Tax Question

Post: Year End Tax Question

Post: Year End Tax Question

Post: Exploring New Neighborhoods for Buy and Hold

Post: Irving, Texas Foreclosures

Post: Irving, Texas Foreclosures

Post: DFW Investors Happy Hour Meetup

Post: DFW Investors Happy Hour Meetup