Just SLIGHTLY overwhelmed with taxes this year
Hows it going BP? Alright, I always find my posts to be way longer than they need to be, so I'm going too try and make this as short and sweet as possible.
Basically, I've always done my taxes myself (turbotax), and never had an issue. I actually really enjoy doing them. I'm a total numbers geek. But my previous returns were very simple, basically just my W2 income, and thats it (short of one year I did itemized deductions for tools for my job)
Now THIS year, I've purchased a 2 family home (in July 2017) in Rhode Island that I will "House Hack". I inherited tenants, and have 8K of income to claim. I also have over 12k expenses that I've made since closing to the end of the year. I talked to a few CPA's who said that with only one property, I shouldn't have any problems doing it on turbo tax myself again. But I'm realizing that its a bit more complicated than I thought. Between having to depreciate items over their useful life (27.5 years). To only being able to partially deduct things to common areas because it will be considered my primary residence. To not being able to write off ANY improvements to my unit. Although, my theory is that the improvements I'm making to my unit are to increase rent value for future tenant. I only intend to live in unit for 1-2 years. So will I be able to take these deductions in a different tax year? (when its rented).
I'm pretty sure I'm just going to end up using a tax professional. I just wanted the 2 cents of you guys first. That's just the start of a list of questions that I'm unsure about with this tax season. But it's enough to start for now, haha
Also, if there are any CPA's that focus heavily in real estate in the East Bay of Rhode Island, or anywhere in RI really, I'd appreciate any recommendations.