We have a paid off rental home held in an LLC that we have a business LoC against (which can be converted to a fixed cash-out mortgage). We are looking to invest the proceeds in real estate abroad. Can we deduct mortg...

But I became very aware of the implications of further documentation & how it my open up another 'can of worms'.I initially decided to sit through it on my own to experience the audit but since then have a good CPA do the filing.I ended up owing about $5,000 in SE taxes for the two years in question.

I encourage all landlords to research their applicants in the court records in the location where the applicant lives, as well as on google and social media sites.

You can't discriminate against the source of income with respect to government assisstance, social security, section 8, welfare or disability income, you can discriminate concerning the likelyhood of receiving income, say child support for a 20 year old student if income ceases in a few months at 21.

And when you partner with someone in an LLC, there are lots of implications you don't even think of.

(total cost of remodel 3k)Her income from her daily job (active income) is 37k annually.I have no income - disabled, and my social security hearing isn't until 2014.

geez bill..i hoped if i stayed away for a few months, you'd go find another website where you could hound people :) seriously though, i don't see the tax implications of an untapped line of credit..there simply is no interest to pay if you don't draw on the line...and i don't see how it's fraudelent or a sham either, if the money is truly available...now a 40k swap for a 40k swap between pals is one thing..but having a buddy set up a line of credit for you, and you setting one up for Tom, who had one set up for John, who sets one up for Ann, etc...

However, once you consider the tax implications...She pays tax on the $10,000 in interest.Total additional cost to her = ~$2,500 (25%)I show a rental expense of $14,700, minus depreciation on the property ($100K after subtracting land value = $3,636 per year for 27.5 years) = $18,300 loss = tax savings of ~$4,575 (25%).Total cost = $15,500 + $2,500 - $3,675 = $17,025Thus, total savings over scenario 1 = $2,075The question is... what am I missing?

Every other line on that closing statement has some implication for your taxes.

How messed up is a society where social welfare is deemed horrendous and a terrible thing, yet corporate welfare is seen as okay and a good thing we should strive for (tax breaks, subsidies, etc).