If a cost segregation study was performed, the accelerated depreciation may further reduce the property’s basis, potentially increasing taxable capital gains when sold.Depreciation recapture will occur when you sell the personal residence, so it’s essential to keep detailed records of all depreciation claimed while the property was used as a rental to ensure accurate tax reporting at that time.This post does not create a CPA-Client relationship.

Ryan nailed it - creating and enforcing house rules is probably the biggest key to success in rent by the room / coliving.Include house rules in your lease - point to the lease when someone breaks the rules / causing issues.

Keeping detailed records is key but convincing the IRS will be a challenge.- Foreign tax credit can help: If rental income is taxed in the country where the property is located, the U.S. offers a foreign tax credit to avoid double taxation.

Check out FilePlace (linked at the bottom of every page) for free user-created resources.🛠 Tech issues?

That cycle of sourcing, assigning, and reinvesting has been a game changer for me too, and I completely agree—it’s the real estate cheat code most people overlook.Being able to create revenue while also creating opportunities for long-term wealth is the best part of this business, and it’s exactly how I plan to keep growing my portfolio.

I will post back tommorrow after I get details of offer. 

While gifts exceeding $18K per year (2024) require filing Form 709, they don't create an immediate tax, but the IRS may scrutinize this as tax avoidance.Tax-Saving Alternatives:Prorated Section 121 Exclusion – If you lived in the home part-time, you may qualify for partial tax exemption.1031 Exchange – If your share was an investment property, reinvesting the proceeds defers capital gains.Installment Sale – Spreading payments over time may reduce your tax bracket.Adjusted Basis Review – Factor in capital improvements and selling costs to lower taxable gains.This post does not create a CPA-Client relationship.

Check out FilePlace, where user-created forms are available for free.

After digging into the details, I discovered that no legitimate HOA meetings or member minutes existed.

@Lexi Blocksom suggest you discuss in detail with @Russell BrazilYou've made a mistake thousands of naive investors have made - expecting Class A results from Class C & D properties:( In general, you'd want to compare what you can sell the property for now versus what it would cost to update it and what you could then sell it for.