All Forum Posts by: Roger S.

Principal is not deductible. That's just a transfer from one account (your bank account) to another (equity in the property). Depreciation is, though. That's 1/27.5 of the value of improvements each year. Land doesn't depreciate. Taxable income from a rental is total rent and any other fees collected (e.g., utilities, late fees) less:

actual expense (utilities, insurance, taxes, legal fees, accounting fees, repairs)
interest (just interest, not principal)
depreciation

Whatever is left is then taxed at your marginal rate. Note that capital items (e.g., new flooring or appliances) as well as any money you spend after you buy a new property until its rent ready is not immediately expensable. Those expenditures must be depreciated on the appropriate schedule. Further note that depreciation taken (or allowed, if you take less than is allowed), decreases your basis which increases the gain when you sell.

I highly recommending getting an accountant who's familiar with real estate. Especially if you're making a pretty good taxable income like you describe.

I don't believe that's always the case. As of 2016, the de minimus safe harbor limit for expensing is $2500 dollars. We rarely spend that much on anything beyond a new HVAC system.

2 Votes

We only charge what the actual background check costs, and once we select a candidate, anyone else in line whose background check hasn't been ran gets their application fee back.

0 Votes

We have always taken a non refundable pet fee, varying between 200-300 bucks. But I've talked to fellow landlords in the area and they mostly add additional rent for pets, between 25-50 bucks a month. Which do you guys see as preferable? Or maybe a little of both? 100 dollar fee and 25 bucks a month?

1 Vote

I haven't had this situation yet, but every story I hear about it, the police cant do anything, it's your word against theirs and so on, so, why not use that same rationale against them? Watch the house, the instant they leave, enter, change the locks and be done with it. What are they going to do, sue you? On what basis? They have no lease, it's your word against theirs and they don't have a shred of documentation.

0 Votes

From what I have read, the housing regs regarding support animals do not apply to single family homes owned by individual investors. I'd have to search to find that again, but I have read it in more than one place

1 Vote

I haven't read the whole thread, but I don't think the mortgage interest deduction limit will hurt us at all. What we deduct is a business expense, interest on a business loan.

0 Votes

Three's Company.

1 Vote

Facebook and a sign in the yard is ALL we ever do to advertise. In our area there are half a dozen "house for rent" type groups. Once someone replies to an add, it's just a mouse click to do some screening based on their own Facebook posts.

1 Vote

Laminate sucks. Water damages it too easily. Allure vinyl is almost indestructible and looks great.

0 Votes

+1 on Facebook. It's the only place we've ever advertised.

0 Votes

All Forum Posts by: Roger S.

Roger S. has started 35 posts and replied 387 times.

Post: Tax question on rental income

Post: Application fees, yes or no?

Post: Pet fee, or pet rent. Preference?

Post: Need Eviction Help non tenant saying shes not leaving!

Post: Emotional Support Animals

Post: Trumps New Tax Plan, Does it hurt RE Investors?

Post: Two girls, one room: help me pick the tenant!

Post: Facebook marketing vacant units??

Post: Flooring for rentals

Post: Top sites to post your rentals