City of Oakland Rental Tax

2 Replies

Hello, newer real estate investor from Oakland, CA.  I bought a triplex in Oakland at the end of last year and recently got a letter from the City saying that I had to pay taxes on my Net rental income.

Does anyone who has property in Oakland have any suggestions on how to go about this?  Not trying to not pay, but was wondering if there are any ways you can write it off or make the hit hurt less.  It kind of caught me off guard.

Thanks,

Jeremy

@J. Martin  is the Oakland guru! He invests in this area and is very knowledgable about these things! He will have insight :)

Originally posted by @Jeremy Rachesky :

Hello, newer real estate investor from Oakland, CA.  I bought a triplex in Oakland at the end of last year and recently got a letter from the City saying that I had to pay taxes on my Net rental income.

Does anyone who has property in Oakland have any suggestions on how to go about this?  Not trying to not pay, but was wondering if there are any ways you can write it off or make the hit hurt less.  It kind of caught me off guard.

Thanks,

Jeremy

 Hi Jeremy,

Yes, I invest in the area also. Thanks for the shoutout Elizabeth Colegrove .

I am not a tax accountant, but this tax, like property taxes, and other expenses, these are a cost of operating the rental unit. Typically, those expenses are deducted in the period in which they are paid if you are on cash basis tax reporting for your income taxes, as they are not a capital expense that needs to be amortized.

So, yes you can write off expense to make the hit hurt less. The cost of doing business in an awesome city ;)  It it's any consolation, your property is probably up $50-150K or so in the past year I would guess! (knowing nothing about it) lol

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