my wife just chimed in....."....become a politicianyou can go from broke to a millionaire on the backs of the taxpayers...."

US Master Depreciation Guide includes this, pre-heaters and softeners as structural.Other taxpayers have found a friendly plumber who simply invoices him or her for plumbing repairs.

First, the taxpayer did not do a good job on recordkeeping (imagine that).

The remaining expenses carryover to the future as a Passive Activity Loss (PAL).Real Estate ProfessionalTo be a real estate professional, an individual must spend the majority of his or her time in real property businesses:• Development or redevelopment• Construction or reconstruction• Acquisition or conversion• Rental• Management or operation• Leasing• BrokerageThe taxpayer must meet each of the following two time requirements:• More than 50 percent of his/her time working in real property businesses; AND,• More than 750 hours of service during the year.One spouse alone must meet both tests.

The pre-2001 rate of 20% applies to taxpayers with taxable incomes over $400,000 ($425,000 HOH, $450,000 MFJ, $225,000 MFS).

I have even heard of cases, one was mentioned on this board in which three properties were flipped in one year; however, the taxpayer also had other investments.

So this is what I came up with: Purchase price/ Value $390,000 Down payment $13,600 Loan amount $376,400$376,400 for 30yrs @ 3.5 apr P&I $1690Rents: $40320 with 5% vacant rate =38304Real Estate Taxes$3,600 Insurance $1500 Managementself manageSnow/lawnselfUtilities1200Repair/maint 2200 (new construction )Gross operating income $38,304 Less: operating expenses $8,600 Net operating income $29,704 Less: annual debt service $19,657 Cash flow before tax $10,047Net operating income $29,704 Less: interest $12,120 Less: depreciation (~4%)$14,182 Taxable income $3,402 * tax bracket (fed)33%Tax payment / (savings)$1,123Cap 7.62Cash on cash 73.87%Is this right?

That means you must at least file Form 1065 US Partnership Tax Return.All incomes and expenses will be reported on this form and that income will pass through to the both of your personal tax returns based upon your ownership percentage.The limit is different for one person versus married.Your biggest mistake is using a program to answer your questions.I represent taxpayers(individual and business) before the IRS.

They're on it, their parents were on it, their grandparents were on it, and - rather than teaching their kids to get a job - they're teaching their kids how to be on it and get free money from the government (tax payers).

I asked in my first offer that the seller pay a 9500$ tax payment at closing.