This means that in order for you to deduct a bad debt, you must have previously included the amount in your income or loaned out your cash.

The second home route allows tax benefits for interest deductions without treating the property as an investment.You can charge rents, doing so may cause different tax treatments depending on charging market rates or nominal rents, but not the mortgage.

My question is can he (he is 60) set up a deductible IRA for 2012 now and take the deduction, then cash it in and pay the tax this year?

But, if you don't, you may find that you can't support taking these payments as deductions when you file your taxes. 2.

From what I understand the LLC can deduct organizational costs.

At this point she would be able to deduct at least 30% of whatever percentage of the house is being rented out.

Appreciation, tax deductions, and amortization are three others.Without knowing your intended strategy, available liquid assets, and goals, it is difficult to provide more detailed advice.

My wife and I want to purchase another larger house at around the same price that we will be selling the house (± $600k).We're in the process of trying to prequalify for a loan at this price, but because our FICO score is not as high as I want (we're both at around 685) and because my earnings for 2012 were kind of low (I am self-employed and deduct a lot), the lender that I've used in the past wants 25% down as opposed to 20% AND the interest rate they are offering on a loan of $412k is 4.0%.I am not happy about this.

If you're into a REI for the appreciation and the cash flow is minimal, how much can tax deductions, and amortization actually help you on your personal returns - what are some basics math figures one can use to do some quick math on a property's investability and tax strategy Thanks in advance

Have that in writing along with the specified penalty that can be deducted from the SD.