All Forum Posts by: Becky Watkins

@Steven Hamilton II does all landscaping and flooring qualify for Bonus Depreciation?

@Dave ToelkesI just want to do whatever is right and proper. I wasn't sure if I should categorize them as building since they are just part of the building. So I can just categorize them all as building, except the carpet, which looks like it is 5 year? Would the half-year convention apply as well? Or mid-month? Deck was early August and the rest were all in October (some mid, some late).

I thought tools had to be capitalized since the life is more than a year. Same with the tree trimming (which we had to do for the safety of the building). The weedwhacker was $102 and the tree trimming (& dead bush removal) was $473. 

The more I read, the more confused I get, so thanks for all the help!

I cannot locate a comprehensive chart. I need to figure out how the type/method/life of the stairs, flooring, tree trimming (potential hazard to building), toilet, sink/faucets, and an electric weedwhacker.

I 90% finished my taxes but feel stuck and hopeless when trying to figure out all this depreciation stuff. I spent hours trying to sort out what is repairs and what is capital. I'm still not sure on the stairs, but decided to treat them as common area even though it's only used by one unit. However, now I feel like I have hit a wall when trying to determine asset type and proper depreciation method. I'm also wondering if there is anything else I'm missing (safe harbors, bonus depreciation section 179 - my head is reeling!).

Are you taking new clients right now or can recommend someone that would be good for a newbie investor/landlord such as myself?

I had it in the title but guess I forgot to mention in the body of the post, but yes, I am owner-occupying. My question is whether the stairs that lead to one of the units would be considered common area. It is outside and this visible by all but they are only used by one unit. If it was removed, there would be no effect on the rest of the building, besides one angry tenant that could not leave their unit. :)

Last year I redid the stairs on my triplex. It was more than a small repair, so I am capitalizing it. My question is whether I can depreciate the whole thing or just 2/3 of the cost. The entrance to my unit is in the front and the other two are in the back. Even though it's a feature of the exterior, these stairs lead to the top unit and they are only used by/a benefit to the top unit.

A different yet related question: one time a tax professional told me it's okay to 2/3 everything, as long as I'm consistent. For example, I can deduct 2/3 improvements done to my own unit as long as I am only deducting 2/3 of the expenses to turn one of the rentals. Is that really the case?

Thanks in advance for any help!

So I have interviewed a few buyer's agents and have it narrowed down to two, who I like for different reasons. One works for ReMax and one for Windermere. Does this make a difference?

Years of trying to communicate with the IRS, EDD, BOE, and DMV made me want to try you guys before trying to get in contact with the DRE, but perhaps not all goverment departments are created equal. Thanks.

Jon Holdman - suggestions on how to locate a real estate lawyer for this question? I tried, back when we were starting, to find a real estate lawyer to be on our team, but was having a hard time finding someone willing to work with little guys. And without such a large container that would cover way more hours than a single consultation would need. I might have been looking in the wrong places/using the wrong search terms. Thanks.

Hi,
My husband and I originally planned to start a property management company after a few years of wholesaling and building our own portfolio. First managing our own properties and then branching out to others.

Then we realized maybe we're wasting a lot of time and stress in a field we know little about (finding deals) and should jump right into starting the business. One thing that set us back a little was the requirement to have a license. I decided to go ahead and get that.

However, upon further research, it looks like it's a broker's license that I would need. It sounds like according to this website (http://www.dre.ca.gov/exm_broker_exper.html) that I would have to be a real estate agent for two years. I would have to be a real estate agent for two years just to be able to manage property? That doesn't make sense, because I don't see what listing and showing houses really has to do with managing properties.

The reason we want to do this is because we do have experience in this field, unlike any other aspect of real estate (my parents have both been agents at one point and I have no desire to pursue that). My husband has been the resident manager of the apartments (38 units) we live in for three years, and I have done the books and tax returns for rental properties through an accounting firm I used to work for.

I'm not sure if I'm reading it right. I want to get started on something proftable as soon as possible, because I have only been losing money sending out yellow letters for the past year trying to find a deal to wholesale. Thanks!

What about an email address? I'm at a lost at what sort of content to include on a website, so even though I'm online so much and used to web design, I haven't set up a website yet. I was wondering if I should include an email address, though, in case people are more likely to respond that way. Or is there a reason for only including a number, such as the personal aspect that more likely leads to a deal than an email would? I imagine any response is better than no response though. Thanks.

We got a strange voicemail from one of our yellow letters. "I got these little notes you sent me. Is this some sort of joke?" I was reluctant to call back, but when we did, the call was not what I expected.

I thought it was just htat the person was confused, which is not surprising, but then he went on to say that he has been doing trustee something (it was hard to understand him) for 35 years and that he got sued once for not filing something right. He was asking us if we have a special form from the state of California to buy houses. If not, we could be sued for triple damages. I was so confused. I haven't reviewed the contracts and paperwork we have, but of course I'd have the entire transaction reviewed by an attorney first. We tried to explain that we don't do short sales or go to auctions, in case that was what he was referring to, but he kept insisting "I know exactly what you guys are doing."

Since he was kind of rude and I got bad vibes from him overall, I'm eager to brush the whole thing off, but I'm wondering if there is any validity to his statements. We tried asking him what he was referring to, but he said that he doesn't know the name offhand, but we need to read the penal code.

I know I'm probably not explaining it well so please ask questions. I can't think of the correct search terms for this. Google asked if I meant treble damages, but that didn't make sense. I'll continue to research and make sure we have professional legal guidance when we get our first deal, but I'm hoping some of you could shed some light on what this guy possibly meant. Thanks.