Mike McCarthy
How does depreciation affect cashflow?
I'm doing an analysis of one of my rental (BRRRR) properties. According to my QuickBooks, I'm doing ok. $480/mo cash flow. Plus another $250/mo mortgage pay-down. Feeling pretty good about myself.But then I looked...
Chaim Rosenstadt
Tax on turnkey Cash Flow
Hiusing a 100K property as an example (turnkey), with a 25 year loan, 76K, 5.6% p.a. that would mean the first year roughly 4K interest, and the depreciation would be 100k/27.5=3.6K, so total 7.6K - 630 USD/month.Now ...
David Raskin
Qualified real property business indebtedness
I invested in bare land to develop. I have a full time job. I had to give back some of my lots and I am looking at substantial debt forgiveness. Can my debt be considered qualified real property business indebtednes...
Nadiya Lonkevych
Could negative cash flow be deducted?
Hi everyone,I am about to become an investor renting out the condo I currently live in (Columbia/Ellicott City, MD area) and purchasing another house for my family. The condo was purchased in 2006 at it's highest ever...
Tom Patel
Tax consequences for deed in lieu.
What will be tax consequences for borrower of rental house giving property back to lender through deed in lieu with following situation.(1) Lender issue 1099C , No deficiency judgement.(2) Lender don't issue 1099C , N...
Dave Limbocker
1031- Defining proceeds from relinquished property
Two rules as I understand it are in order to defer all taxes in a 1031, newly purchased property must be equal or greater in value of the net sales price of relinquished property and carry the same leverage (loan) of ...
Julio Gonzalez
Is cost segregation really worth it due to recapture?
One of the biggest arguments I see around cost segregation studies is the issue of depreciation recapture upon the sale of the property. Do the benefits of the cost segregation study outweigh the cost of recapture? As...
Bradley Pitts
Rental Business: Active vs Passive Income
Hi,I think I understand the difference between active and passive income. Passive income applies to most small landlords/owners as they collect rent from tenants. This also applies to investors who collect interest or...
Mark Caragio
AMT eats up suspended passive losses?
After a 1031 exchange, my replacement properties are now generating taxable income. These gains are offset in regular taxes by passive loss carry forwards, and not taxed until I run out of these carry forwards (I bel...
Peter Schuyler
Paying down Mortgage and the IRS view
I think I know the answer to this, but if I want to reduce my passive income, is paying down the mortgage via extra principal payments reduce my passive taxable income or is it viewed basically as profit? (this is in...