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16 October 2023 | 0 replies
This time I wanted to add a property to show that the benefits of cost segs on residential rentals may improve as the income producing properties increases.Not much has changed except for gross rental of 40k, designed to represent net income, has been added (you could also pretend to divide 40 across multiple properties)However, the bonus depreciation not used on the "Property A" gets transferred over to "Property B" (in effect).Although this doesn't offset W-2 income, don't ignore the fact rental income is taxed at ordinary rates, so the benefit is still there.I think the takeaway may be consider holding off on the bonus until you have more properties if there are insufficient, other passive activities to absorb the amounts.
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14 November 2019 | 36 replies
Tenants stated they never smoked in and only outside on the patio.
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22 October 2023 | 34 replies
They will not be owned by you.Furthermore, there is the possibility of having to pay tax on unrelated business taxable income if the income you earned is ordinary and not exactly aligned with the not-for-profit's mission.
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20 October 2023 | 5 replies
It is not ordinary but there may be creative tax situations where having a property (business) that loses money would be beneficial in other ways.
2 September 2022 | 10 replies
Last year i decided to diversify and start installing decorative concrete overlays as i knew there was a great demand for this trade...Patios, interior floors, garages, basements, pool decks, and foundations are all candidates for cement overlays....
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15 October 2023 | 16 replies
Losses from rental property are considered passive losses and can generally offset passive income only (that is, income from other rental properties or another small business in which you do not materially participate, not including investments).If these passive losses exceed your passive income, they are suspended and carried forward indefinitely until future years, when you either have passive income or sell a property at a gain.Generally, the only time passive losses will offset your ordinary income from a W-2 job or another trade or business from passive activity rule which says you can deduct up to $25,000 in passive losses against your ordinary income (W-2 wages) if your modified adjusted gross income (MAGI) is $100,000 or less.
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18 February 2023 | 7 replies
So I have nothing but loss for 2022 but as a high W2 earner I am looking for the losses to offset my ordinary income.
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15 April 2019 | 4 replies
This is because I hear if you buy and sell properties often in one LLC you can be hit with IRS 'trader status' making it so you get taxed on short term capital gains ordinary income VS long term capital gains.
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26 October 2023 | 4 replies
I can calculate capital gains in a vacuum assuming $0 of ordinary income, but layering on income gets very tricky.Bonus points if anyone has a spreadsheet for calculating capital gains tax with income that ALSO includes the net investment income tax . . .
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21 March 2017 | 4 replies
, fixtures (ceiling fans), patio vs deck?