All Forum Posts by: Aaron Zimmerman

I make my clients do the bookkeeping but we always review repairs vs capex. Don't forget about the de minimis safe harbor for properties that are already placed in service. For instance, if you buy one appliance for $1,000, that would be eligible for the de minimis safe harbor and therefore can expense immediately 

On the STR side, the timing could be tight especially if they're building out. Assuming they do get it up And running before year end, they'd need two stays at least, materially participate, and not use too much for personal use.

I'd encourage them to max out 401k's, HSAs, and then consider donor advised funds with highly appreciated stock. There's likely more than can be done before year end but the timing will be tight for any real estate items. 

@Adan Caballero I'd read BPs book on house hacking. Craig curelop is a great resource.

High level what you're looking for out of a house hack is for it to Reduce your living expenses while living there and cash flow/break even upon leaving.. I'd start by running the numbers yourself.

to get preapproved, start reaching out to lenders and then work with a real estate agent 

Bill - congrats! What questions do you have as you're working your way through? Are you under contract?

@Ruth Schrader-Grace glad to hear!

@Michael Plaks I second this. Leave this to a pro and also you're not going to be saving much in taxes anyway by doing this. Do the 3115 in 2025 and be done with it 

@Michael Kare if it's passive, it will flow through to form 8582. That's where the loss would show and any carryforward would be. 

I would speak to a lender on this. As others have said, from a tax perspective, you'll have slightly more depreciation (41,000/27.5). What really matters is how that $41k affects your debt to income. 

if there's a way to put down cash for the roof, that might be a better option if you're on the edge for qualifying for another property. 

You will need to list the property for 30+ day stays otherwise you risk your property getting shut down. Ideally you can still list this property as a medium term rental or a long term rental but it will Not be considered a short term rental for tax purposes.