I'd like to add to the above by saying that RUBS billing is the single smartest, most intelligent improvement we've ever made as Property Managers.   

Kinda hard to make $760,000 appear out of thin air, haha.

Name:- Dean (aka GOGS...it's an Air Force thing, ask me about it in person lol)Area of Expertise:- Systems & Technology Implementation, Automation, AI, etc.

Does anyone know if there is a way to request an increase higher than 3.5% due to all of these capital improvements done on the home?

If you’ve owned it for a few years there a cap on the amount they can increase the taxable value, I believe it’s 15% excluding improvements to the property.

Here are a few definitions that you absolutely must know.Bookmark this thread and use it as your cheat sheet for 2024.Okay, let’s dive in:Here are the terms that I’ll define in this thread:-DEPRECIATION-BONUS DEPRECIATION-COST SEGREGATION -BASIS-LAND VALUE-IMPROVEMENT VALUE-3115-RECAPTUREDEPRECIATION:Depreciation is the decrease in $$ value of your asset over time due to wear & tear, etc.Standard depreciation is deducted evenly over 27.5 years for residential and 39 years for commercial.Even w/o cost segregation you get to deduct depreciation each year.BONUS DEPRECIATION:This is an accelerated depreciation method.

The formula for your taxable amount is the difference between your net sale (contract price minus closing costs) and your adjusted cost basis (original purchase price plus capital improvements minus depreciation). 

Purchase price: $105,000 Cash invested: $10,000 Sale price: $210,000 While in college, I had enough money saved to put 3% down on a property and make some small improvements.

I know it is a capital improvement and needs to be depreciated - which makes me think to claim it in 2023 when the work was done, but since we didn't pay it until 2024 - that seems wrong. 

Hi, I am reaching out because a couple of properties that have equity and I am looking for ways to pull some of that equity to redeploy the money into the properties to do improvements to maximize my income streams by building ADUs.