All Forum Posts by: Jason Xue

@Ashish Acharya thanks for weighing in on this... I ask because I heard from someone that the IRS sees the scenario as, these people are going to eat these meals regardless of whether they are on a business trip or at home. So in order for any of these meals to be deductible, it has to have a business purpose with business partners,clients,etc. 

Anyone else out there able to provide their two cents on this question?? 

@Ashish Acharya thanks for your suggestion! Do I have to meet with a business partner over the meal in order for it to qualify? Or is it deductible simply because it was a meal during the travel trip?

I am planning to visit my rental property (out of state) and meet with my team (agent, property manager, etc). I know that the mileage (I'm driving) is fully deductible, but are all meals also deductible? or only the meals where I meet with my business partners and discuss business? Technically, these meals wouldn't have taken place if I wasn't on this trip, right?

Guidelines on the IRS website is rather vague... Here's an excerpt.

Deductible travel expenses while away from home include, but aren't limited to, the costs of:

1. Travel by airplane, train, bus or car between your home and your business destination. (If you're provided with a ticket or you're riding free as a result of a frequent traveler or similar program, your cost is zero.)
2. Fares for taxis or other types of transportation between the airport or train station and your hotel, the hotel and the work location, and from one customer to another, or from one place of business to another.
3. Shipping of baggage, and sample or display material between your regular and temporary work locations.
4. Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
5. Meals and lodging.

https://www.irs.gov/taxtopics/tc511 

@Dave Toelkes Hey Dave when you refer to the MAGI limits of 100K and 150K, is that for single filing status? If filing married, then would that limit be higher?

@Greg Scully Thanks for your input Greg! About how much would it cost per to put in simple framed out units? 

I agree with Mike -- I know that quartz these days are becoming much more comparable in price. Perhaps seek out a few more options? 

There is a good amount of basement space in this property too. Currently, it isn't used for much. There is a section designated for laundry machines. What are some things I can use that space for to get more income? Would storage units be a good idea? 

@Zariyan S. If this is going to be a rental down the line, quartz would probably be a safe bet. You're right that tenants probably will not take care of the granite well, so anything that is more tenant proof is a good idea. With that said, have you thought about cheaper alternatives such as laminate countertops? Since this is going to be a rental property anyways, perhaps that would be cost effective and won't affect your ability to rent for top dollar. As mentioned, see what comps have. If everyone has quartz and you don't, then that could affect how much rent you can get. However, that's only one of many variables to consider.

@Will F. how is it working out so far??

@Jeremy F. I think it's totally fine to put in an offer based on your underwriting with limited information. The initial offer doesn't mean that much. Due diligence is when you get all the docs, leases, statements, inspections, etc. and then you refine your offer after that. Just make sure you have good contingencies in place so that you have a way out of it. And if the seller balks at your offer, then that's that. No hard feels, just business. Many investors do it this way. It'll be nice to get all the information up front, but it's not always that way.