Maybe that is why the old owner didn't pay their taxes?

Hi All, any input on renovating a house and possible tax exemptions under an LLC?

I would keep it in a high interest bank account might as well earn as much gain as you can no matter how small it is.However I think some debt pay down would be great not to the point where you are not liquid enough to Jump at another opportunity or can’t make a major repair when it arise.

Rentals boil down to how much do you net after paying principle, interest, taxes, insurance, and a maintenance reserve.  

Net earnings were about $400,000/year, so the business component of the sale was valued at about 3X, or $1.2M. 

What's even more frustrating than asking the IRS help desk, is asking a Turbo Tax "Tax Specialist".

@Anita Z.I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning.

And she’s the one that released the latest tax rates and year to year comparisons in September of 2024.

5 Tax Mitigation Strategies Every Real Estate Investor Should KnowAs a real estate investor, every dollar you save in taxes is another dollar you can reinvest into growing your portfolio.

But let HIM earn it.