Dustin Awtrey
Taxes on rental income
As a regular w2 employee, a general rule of thumb is you will be paying 1/3 of your income into taxes. If you are full time landlord and live only off rental income profits what is a general rule of thumb on taxes y...
Chris Sullens
Are all costs prior to placing a tenant considered purchase cost?
So an experienced CPA recently told me that essentially all costs incurred prior to placing a tenant are considered to be acquisition costs and get written off only as depreciation. Is this true? I'm sure he knows wha...
Steven Hamilton II
$500 safe harbor increased to $2,500 for taxpayers
Good news everyone, the $500 de minimis safe harbor limit was increased to $2,500 for taxpayers who place property in service, that are NOT required to produce an audited financial statement(applicable finance stateme...
LuAnn Vigen
keeping track of the basis of a rental
I just purchased my 5th rental and I am in need of some advise on how to set up books and track the basis of this house. I past attempts have not been without problems. What categories do you use? Once the house is re...
Justin Fox
Capital Expenditure depreciated over life of property.
So say you've been depreciating a property for 10 years. Year 11 rolls around and you completely replace the roof. Does that just increase the remaining depreciable balance (basis) for 17.5 years? Or do you deprec...
David Egan
$25,000 loss, tax cap?
I just came from my CPA's office where I was informed that there was a $25k loss limit for write-offs for a rental property. I Have spent the past year and $70k repairing and remodeling a 4-plex I bought in Jan 2016. ...
Minh Lai
Are operating expenses tax-deductible? & Other Tax questions
Hello, I got some caffeine in my system so let me know if you do not follow. 1a) I know that Interest on the mortgage is deductible 1b) I know that property depreciation is tax-deductibleTotal Tax Deductions = (Inter...
Ben Vandorn
1031 into new construction but already own land
I would like to 1031 out of an investment building that I have owned for several years and exchange into new construction buildings on raw land that I already own (paid cash for land a few months ago and construction ...
Mike D.
Techniques to report Capital Improvements as Repairs
I will be closing on a 4 plex apartment building this month. Each unit in the building needs new windows and could use some updates to the kitchen and needs new carpet. IRS rules require that repairs, when done as par...
Evan O'Brien
Rehab Costs and HOA’s
If you purchase a property that is affiliated with an HOA, as the property owner will you be allowed to make any type of repairs or rehab work to the property? Or will the HOA determine what rehab costs and repairs wi...