All Forum Posts by: Stephen Race

Sorry. To clarify, I live in Virginia and rental properties are in South Carolina.

Hi, I stayed for 2 months at a rental property I own. I rented the property in 2013 - 230 days. For the 60 days I stayed at the property, I worked on it (more than 4 hrs / day) for 25 Monday thru Friday days, and had "Personal" or no work for 15 Monday they Friday days. Some weeks I worked on the property 2 days and some 4 days. So, question is can I take M&IE expense for the Weekend days? Or just for the weekends that I worked 3 or more days?

Does the basis for depreciation change each year if you have personal use (less than 10% of rented days)? For example, purchase price is $275. Depreciation is $10 / yr. with no personal use. If use 10% each yr, then depreciation claimed on tax return is $9/yr. For future years, does one adjust the basis, since the full depreciation amount was not claimed, or do you continue with original basis and end up after 27.5 yrs with 10% of the original value not depreciated from a tax basis standpoint?

Thanks Bill. I read your first post, but I was not clear on the answer. Your second post made it very clear.

Thanks for the very fast responses. John, you are correct and I agree it is liberal. I try to use policy that I would prefer as a renter (maybe naively so :) ) The 50% deposit I take is refundable up to 30 days before the rental date. The deposit is applied to the rental price. So, does the fact that it is refundable make an argument for deferring recording it to 30 days before arrival (nonrefundable status)?

Hi, I have short term rental properties renting by the week. I take a 50% refundable deposit at reservation time, then the balance 30 days before arrival. I take deposits up to a year before arrival. For tax purposes, I am using cash method, so I should claim the income when it is received. I had a CPA tell me that since it is refundable, that I don't have to claim it until it becomes nonrefundable (30 days before). This would significantly reduce my tax burden this year, but I want a second opinion on the legitimacy of this approach.

Thanks.

Hi, I purchased a rental property in a beach front condo complex on Hilton Head Island and am trying to determine the land value. Talking with the Town, they do not assess the land and building separately (like most taxing authorities do). They did not know of a good way to value the land. Speaking with 2 realtors, there is no comparable size/location land only property for sale or sold recently. I talked to the management company and got the insured value (only building is insured), but that is only about 30% of the total assessed value, because the building insurance just rebuilds to original shell. I am at a loss to find a way to determine the land value. Any experience on what to do in these cases?

I think I found my answer from a previous post:

http://www.biggerpockets.com/forums/51/topics/86481-rental-property-and-segmented-depreciation

I should claim a $0 sale with the cost basis as the the remaining basis (generating a loss equal to the remaining basis)...and use form 4797. Correct?

I opened an individual 401K with Vanguard last year. Very simple process, about 15 minutes to fill out forms and e-mailed back. If you have other Vanguard investments, this one just shows up as another account with easy account through a browser or their mobile app. There is $20 fee per year per fund you are invested in or no fee if you qualify as a Flagship or Voyager client. Very cheap.

Hi, I purchased a furnished rental property last year. I created a separate depreciation item for the original personal property which is in year 2 of 5 years of depreciable life. I recently did a remodel and donated/threw in the trash most of the original personal property. I believe the correct process is to take the remaining depreciable amount for the disposed of items and claim as an expense in the current year. Correct? How do I do that specifically with tax forms? Include as depreciation?