All Forum Posts by: David V.

Hi Jason, Thank you for confirming what I suspected.  I feel it's always best to collaborate with others on such issues and people like you and Mike make this forum a great resource.

Thank you Michael and Jason for your comments.  You both confirmed what I was suspecting.  And Michael - Although I don't regularly post here but I remember you from years past replying to my accounting questions.  Darn - you are very committed to this forum.    I do have a follow up question on not benefiting from the "improvement" if I do a 1031 exchange.   

My question is - wouldn't I be able to add the amount of the improvement to my adjusted basis for the property to be sold?  Similarly, I am currently depreciating an HVAC system I installed several years ago so wouldn't the remaining undepreciated amount be added to my adjusted (carryover) basis (using either the general or simplified methods) after the exchange is completed?  

Regards

Dave

Hello Tax pros,

I am planning on executing a 1031 Exchange (simple one - no boot, same owner, etc.) using IPX 1031 sometime over next couple of months  (already had call with IPX) and had a question relating to my taxes on the potential upcoming transaction.  I have been doing my own taxes my whole life (56 now) and have 5 rentals (don't want anymore) so i feel comfortable about 95% of the time when filling them out.  I reviewed Form 8824 and after much research I generally feel comfortable completing the form as well as how to depreciate the carryover basis and additional (or excess) basis using either of the two allowable methods (general and simplified methods).  However, I would like to know if I could pay someone to review my worksheets I create to complete the form and the depreciation calculations as well.  Not looking to hand off my taxes but rather a consultation to review this piece when the time comes.  I suspect when the time comes for a tax pro this would be an easy task.  Regards.  Dave

Quick question to the Tax pros out there.  I am considering resurficing my rental garage floor with Plyurea and was wondering if this can be expensed or is this an improvement that needs to be depreciated?  I suspect even if it is an improvement I could likely expense it under the Deminimis Safe Harbor if under 2.5K anyway?   With this said, I would never do this for a rental so this is a rental (tenant moved out) that I plan on selling using a 1031 exchange on soon and the garage floor has lots of cracks and stains so I want to make the floor look nicer.  Regards dave

 Hi John, All good points.  Especially about looking for a larger independent insurance provider and teh umbrella coverage.  Thanks so much for your comments.  Much appreciated.

 Hi Jason, thanks for your comments.  Yes - I agree - nothing is mentioned in the policy.  Luckily I have plenty of time to make any changes in insurance providers or renewing tenants on an annual basis.

Hi Cory,  Thanks for your comments.  Good point on the supporting documentation.  And good point on renewing the rents to a 12 month lease.  This was one say that I planned on solving this issue as my tenants could use a rent increase.  Also, do you know of any local real estate investor advisors that work in the Raleigh, NC area?  I only own five rentals and have been doing my own taxes for years but occassionaly questions come up where its good to have an advisor.  Best Regards

I recently had a conversation with my Insurance provider (AMICA) for the past 4 years on my umbrella policy.  As we chatted she asked me questions about my existing portfolio f 5 rental properties.  She asked if they are under an annual lease.  I said all were under one year leases in the beginning but some have since been renewed as month-to-month.  She said that AMICA does not insure for any leases for less than a year and that my coverage would be canceled when they come up for renewal next Spring.   I was surprised to hear this since I have owned multiple properties for over 15 years and this was the first time I heard this.  Also, I would suspect that most landlords would be in a similar situation.  I checked my policies and could not find any language within them relating to lease terms.  So now I am wondering did i speak with an uninformed agent or is this common practice in the industry?   Is this likely just specific AMICA policies or do most of the insurance companies require an annual lease ALL THE TIME.  It seems odd that an insurance company would cancel coverage when annual leases renew to month-to-month.  I would greatly appreciate any feedback from the BP community on this.  Regards. Dave

Thanks but which Form is this done on?  Following along in Turbox Tax it takes me to Form 4797 which then flows through Schedule as a capital loss.  So its not flowing through Schedule E.  Does this sound right?

regards

Thanks - thats what i thought and was hoping.  Yeah - 10 years is awful.  Was my first install for a heat pump so I think i got a lousy installer.  Plus my tenants are bad at changing the filters.  Properties are 4 hours away in NC and i have since hired a HVAC contractor to perform semi annual inspections.