All Forum Posts by: Sumit B.

@Jerry V.

Thanks Jerry!

@Nathan M kiefer

Thank you Nathan!!

Hello everyone,

I have question regarding roof replacement if covered by insurance, is it eligible for depreciation over 27.5 years?

My property went in contract as rental in Nov 2021, The roof was replaced in Nov-Dec 2021. The total cost was around $11,800. My insurance covered the $10k however I had to pay the remaining balance.

When I did my taxes for 2022, I asked my CPA if the amount paid by insurance ($10k) can be depreciated as an capital expense. He said unfortunately since it was covered by insurance I cannot claim it. However I can only claim $1800 that I paid out of pocket.

Just wanted to get your thoughts.

Thank you!!

@Steve Vaughan

Question for all in this forum as I want to hear your thoughts.

I currently own 1 rental- it was originally a residential on personal name, we moved out and put in for rent. I do plan to keep as rental property as long as I can. My CPA advises to transfer the property in an LLC which I have been thinking of as well.

My first question is- I want to add another property as second home for STR probably out of state in FL, I have read and heard that with second home financing you only need to put 10-15% down payment.

If I do purchase second property as Vacation home, does this mean I cannot put this property in to existing LLC with my first rental property?

Or vacation rentals can not be put in an LLC, since it's a second home financed property?

Also second question-

when you open an LLC for rental property, does the credit card account needs to opened on personal name or can you open credit card on the LLC name? I have also watched videos that explains the difference between building personal credit and business credit for your LLC.

They were referring to the DUN & Bradstreet bureau and how to build your business credit?? I want to know if this applies to Rental properties LLC's as well??

@Stetson Miller

Thank you everyone for your feedback!!!

@Stetson Miller

Thank you Stetson for the info. This is very helpful. I have few follow up questions

1. Does the 7 day minimum rental mean owner cannot rent property more than 7 consecutive days to a guest?

2. Is it better to purchase property as Vacation Rental STR, and then decide to switch to Long Term Rental if the regulations become more strict?

3. Is it a must to have a property manager on the vacation rental due to the city rental database requirement?

4. How are out of state or local investors reacting to the ordinance to register with the city? Do you still see the uptick in investors buying STR or has that gone down?

Thank you!! And I didn’t realize until you mentioned about my response to Natalie Kolodji’s post. Call it a rookie mistake being new to BP forums. 

But I do appreciate it and I will look into the rest. 

@Natalie Kolodij

I tend to agree. I am new real estate investor with 1 rental property in my portfolio looking to grow my portfolio in STR. Out of state.

I have been watching videos, google articles etc.. and I came across Karlton Dennis videos, Clint Coons Esq. and few other with the same message as Tax Strategist and CPA are two different things. And the tax advantages of investing in STR with using the tax code section 469 by materially participating. Lots of good info on

Asset Protection ,Real estate Investing ,Entity Formation

There is also a YouTube video form BiggerPockets channel titled “ Why real estate investors need a tax strategist!”

Anyone else have any expertise or worked with these two firms? Any other tax strategist you can recommend??

I actually have reached out to Karlton Dennis firm and will continue to to reach out to

Hello,

Any recommendations on real estate savvy tax strategist who would help with investing in real estate and understanding the tax advantages.

I am a beginner in real estate with 1 rental property portfolio. Looking to build portfolio

Hello everyone,

Looking to start investing in STR - vacation rental out state in Florida. Just want to get a little more knowledge on the STR in Cape Coral, any STR - regulations that are investor friendly?

What areas in Cale coral are good to invest in STR??