One of my tenants texted me that he has not received his paycheck yet due to the federal government shut down.

Business owners can reduce their taxable income by spending some of their income on necessary business expenses, and if you're business is structured properly, you can certainly reduce taxable business income to $0 (by paying out all income in salary and reducing net income to $0) -- but if you're paying yourself salary, you're going to incur income tax (and potentially self-employment taxes) on that salaried income.In general (e.g., most of the time), if you want to pay less in taxes, you ultimately need to put less money in your pocket as well.

So, just like for all the other expenses, it gets subtracted from the income received by the property when computing the net taxable income.

The PVA website has its 2012 taxable value as $300,000; it has it's 2014 taxable value as $185,000.

My husband, who continues to work full time (excepting when he's a furloughed federal employee) and I built the company one property at a time and both worked full time professional positions for the the first 7 years/11 properties.

The federal government shutdown began October 1, 2013.

@Kevin Hunt I have never heard or read any federal or state law to state that a simultaneous closing is illegal, but I'm sure there are more well versed people on this forum to specific statutes that specifically state that a double closing is loan fraud or illegal...if they can cite the statutes, then please post the references so we can review them.However, what you'll find, is title companies doing CYA and not doing double closings.There are still some that do double closings, but worse case, you can get transactional funding which closes your side with the seller, then the buyer closes the B-C side.

While there are some basic matters that are consistent nation wide, federally, state laws vary and someone who deals in one state may not be accurate in assessing issues in another state, so realize the sources of information.

The original post concerned @Daniel Miller and his worries over his parents 'assuming' the mortgage on his investment property.Lots of good posts, but perhaps to deaf ears.The primary Federal code is Garn St.

If there is any taxable gain, then yes, any capital improvements would raise their basis.Obviously, they need to talk to an accountant.