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HOUSE HACKING CPA SPECIALIST
I am a fairly new investor and I just purchased my first house hack with a Duplex. Its tax season and I was wondering if anyone recommends a great CPA who specializes in real estate and House Hacks. All recommendations are appreciated. You can message me if you would like. Thank you
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#3 Tax, SDIRAs & Cost Segregation Contributor
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- New York, NY
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#3 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- New York, NY
House hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.
You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion
- Basit Siddiqi
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