All Forum Posts by: Alyssa Magyar

I bought my townhome in March 2021 and will have lived there for 2 years in March 2023. I plan to move to be with my husband (military) in December 2022 and rent out my townhome starting January 2023. I hope to rent out my townhome as long as it makes sense- would it be wise to wait until March 2023 so that i can get the tax benefit of living there for 2 years (tax free capital gain) in case I do sell it in the future? Or would it be best to rent as soon as possible and start collecting the cash flow? I would like to live with my husband as soon as I can which would be in December but also want to be wise about the rental and plan ahead. Thank you!

I will be renting out my current primary residence starting in 2023 and wont be able to transfer the property into an LLC (they will most likely call the loan if i do) I am looking for alternative means of asset protection for the rental property including the best landlord insurance. Any suggestions for landlord insurance and strategies for additional asset protection? thank you!

Thank you @Nathan Gesner! That was very helpful. My townhome will be my first rental property and is currently my primary residence/ in my name. If i were to not transfer to an LLC right away, do you recommend getting the checking and savings account in my name or in an unofficial business name? I currently use a separate brokerage account where i transfer all of my savings/ extra income from my W2 job- would that be okay to use for extra income from the rental property that i can save for another property? Or is it better to get another account just for extra income from that property and not from other income? Thanks again!

Hi all! I have one town home I am currently living in and hoping to rent beginning in 2023! (hoping to do a mid-term rental, furnished, focusing on professionals/traveling nurses). I know I need to get a credit card and bank account separate from my personal ones. Any suggestions on how many bank accounts I need, and which banks and credit cards are best to use for the rental property? Also, how do you go about paying yourself through the rental property bank account? Do you take a % and do a direct deposit/transfer from the business account to personal? Any advice and info is very appreciated! Thank you!

Thanks @Joe Splitrock! I wont be renting the place out at all in 2022 until maybe August 2022 and will be renting out the entire townhome. Does renting for only a portion of the year affect how much of these expenses i can claim as deductions? Thanks again!

Thank you Charles! What line would this go on Schedule 1? 8i: Activity not engaged in for profit income? 

Looking for guidance for how to handle rental income on my tax return this year:

1. 1. Rented a room in my town home to a friend from May 2021 to December 2021. I live there as well.
2. 2. Made around $3k in rental income (she paid significantly below fair market value- rented to her as more of a favor/ help with my mortgage than to make a profit). A townhome like mine goes for around $1,600 per month.

From what I've researched it seems like this income would be considered "Not Rented for Profit" (IRS Publication 527) and included on Line 8 of Form 1040. I will not itemize (my only itemized deductions are my mortgage interest and mortgage insurance and its well below the standard deduction).My question is: Am I handling this correctly from what I've researched and is there any other rental deductions I can take? Any other guidance would be very helpful! Thank you!