Hello BiggerPockets Team,
Throughout the years I have been house hacking and networking with like minded investors, the 2 areas I have noticed newer house hackers not necessarily struggle with, but definitely overlook, is knowing what is and is not tax deductible when it come to accurately tracking rental expenses and also understanding the in’s and out’s of insurance. What you are and are not covered for and what you need to be covered for- specifically insurance for short term rentals.
Reaching out in an effort to network with some local tax professionals and also local insurance agents that are house hack/STR friendly.
Thank you in advance for the help.
Keep on crushing it!!!
I’m a local independent insurance agent and I also own short term rentals. How can I help?
Hi @Kristine Hodges , thank you for reaching out! I will connect with you directly through messenger
Hey Ben, I have a cpa that I am using for this.
Reach out with any other questions, more than happy to help.
Geoffrey N Geever, CPA
GCK Accounting, LLC
1776 S. Jackson Street #212
Denver, CO 80210
Phone: (303) 222-1616
@Chad Rocke thank you so much for the recommendation. I will reach out to him.
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
I know a great insurance broker who can help with any property related insurance needs. Let me know if you'd like his contact information.
Just circling back to this post. Anyone have any recommendations for Local Denver Metro tax professionals familiar with rental investing principles?
Hey @Ben Einspahr - I've found this to be the most challenging, frustrating part of real estate investing as well! Have been running our real estate investment biz since 2015 - and have had 3 CPA's - this last one is pretty good and really understands what we're doing. We have rentals, do flips, have construction projects for clients, and STR our primary when we travel. We are set up as an LLC, so all pass through my husband and I's personal expenses - so he doesn't take a salary....
Ok, I'm rambling - but we use Singular CPA - https://singularcpa.com/ - he's understood our business (cap gains, depreciation, etc) and has quarterly meetings with us to make sure things are running correctly - and we can reach out to him about our strategy before we purchase properties. Feel free to reach out with any follow up questions - and good luck!
@Catie Lawrence , Thank you so much for your recommendation. I agree, finding a top notch CPA on your REI team is challenging. I will be sure and connect with them.
I'm in a similar situation. Need to find a tax professional in the south Denver area
Subscribed to this thread, was about to post the same question