That’s why you should document the cost basis of your home over time.To calculate the cost basis of their homes, owners typically start with the purchase price.

We don't use percentages at all in our calculations.

Unfortunately, common spaces that you use as part of your personal space can't be included in the rental portion calculations. 

Section two consists of the gross income from the property for investment, and section three will calculate the interest amount that is over your deduction amount that will have to be utilized in the following year.To ensure that your tax forms are filed correctly, it is best to have assistance from a certified accountant.

I also left him an area calculation from our "buying" appraisal, which showed that the square footage was higher than what was shown in county records.

Of course, this yield, while strong, may not move the needle enough if the overall basis on the initial acquisition is "too high", so there needs to be a current yield calculation on the whole property.

The point here is, because I thought my bid would only go toward 2007-2008 (and not subsequent years), I calculated my maximum bid way too low.I'd been trying to contact the owners (out of state, inherited the house, in financial difficulty themselves) in vain since September 2014, so I am almost 100% sure that they will not redeem the tax lien, or even know it's been sold. 

(I currently have a P&L spreadsheet that has been working great for me thus far), but when it comes time to make important calculations every bit of mentorship along the way will be incredibly important.

based on my calculations, I've decided on term life, 20 years, 2 million.   

After calculating everything, I found that in the first year cash flow would be cash flow positive by ~$250-$300 based on the expenses provided.- 20% down, 7.5% rateI question if there are things I'm overlooking with this being potentially my first investment property.