It’s not absolutely necessary to hire a CPA with just two rental properties, but it can be really helpful, especially when you’re new to the tax benefits and deductions available.

McElhannon: Wouldn't all the other 17 years of expenses (taxes, maintenance, fees, etc)  also be deducted from the price and not just depreciation? 

You can still deduct expenses and claim depreciation without the LLC.

So, don't expect to be able to do a cost seg study on the property and take a big bonus depreciation deduction, unless the new property has significantly higher value than the exchanged property.  

By forming a property management company, you could deduct business expenses like office supplies, software, and possibly a home office, which you wouldn’t otherwise be able to claim.

Hey @Ujwal Kolli,When you do a cash-out refinance on one rental property to pay off the mortgage on another, the interest tracing rules generally allow the interest to be deductible if the loan proceeds are used for business purposes, like paying off another rental.

(These averages represent state-level data, and individual cities may levy additional taxes.)To achieve the same level of cash flow as a property in Nevada, you would need to generate a higher cash flow in Texas to offset the higher operating costs.

😊CA is a pretty easy state to get wage garnishments, all the while interest in accruing on the judgement, and also you can get bank levies.

I bought quite a few SFRs in Madison MS that all qualified and I promptly got audited. and of course my CPA could easily prove I was full time and qualified for the deduction.

If the carpet is damaged beyond ordinary wear-and-tear, then you deduct from the deposit and charge anything remaining.