All Forum Posts by: Casey Cu

So I think BMR's followup question answered my first...

My ready to rent date was 10/15...

anything before that date goes on the 27.5 years cost basis. Right?

including, Shed, Plumbing, Driving Miles back and forth to home, lawn-mowing, Insurance, Sewer Scope, etc...

My accountant told me something different than the IRS, that's why I'm looking to a third source.

I pay a tax accountant to go over my return with me after I'm done for 3 reasons.
# 1 - If I do it myself, I understand and make tax wise financial decisions through the year.
# 2 My tax bill with them preparing would be over $1000.
# 3 Despite trying several accountants, I frankly have been unimpressed.
One told me I didn't have to collect sales tax on short term rentals, One told me I could use 179 on a rental properties. There were two other mistakes I can't recall off the top of my head.

So If I would rather them double check my work, than me double check their work.. I learn more and it's much cheaper.

Hi, Purchased a foreclosed property, ready to rent n 10/15/07

I redid most things...

Here is how I planned on depreciating, but called IRS to ask a question, and they seemed to imply that all of these should be added into value of the house and depreciated over 27.5, but I'm not sure we were communicationg effectively.

Obviously I would prefer 5-7?

Question # 1 --- Which is right.

Kitchen Cabinets - 5 or 27.5
New laminated floors (on top of old hardwood) - 5 or 27.5
Redo Bathroom (drywall one wall, new vanity/mirror/toilet/shower) - 5 or 27.5
New Shed in backyard - 5 or 7 or 27.5

References

Page 31 of Pub 946 - http://www.irs.gov/pub/irs-pdf/p946.pdf
Page 3 of Pub 527 - http://www.irs.gov/pub/irs-pdf/p527.pdf

All seem to agree these should be 27.5
Sewer Line
Windows
Water Heater
Furnace
Plumbing System

Question # 2 - I got a mortgage on a rental condo I owned to pay for this rental home.
I assume the mortgage costs go towards the condo rental property (not the home).. If I've already been depreciating the condo for the past 5 years, how do I depreciate the legal fees, appraisal, loan costs etc.. (I think they go towards the full 27.5 cost of the condo.. but I already started that 5 years ago)

Do i need to start a separate depreciation category for 27.5 years, which would go 5 years beyond the actual depreciation of the condo?

Looking at two houses...
for rental investment in not fancy neighborhoods

First on an nicer block in rougher neighbohood..

Second in much nicer neighborhood, but both houses on either side are bad.. knee high weeds, five cars parked out front...

If it wasn't for the two bad neighbors Second house is a better deal by like 50%..

So what do you folks do about bad neighbors?

Hi, I'm Casey from Colorado.

I currently own a vacation condo that I rent on a short term basis. (approx 150 days a yr)

I run the rentals as an llc for everything, but I never got around to makeing the llc the owner of the actual property (is it quit-claim or quick-claim?)

So I want to get a mortgage on the property (i currently own it free and clear) but I'm assuming I should do the quick claim first and get the property to be owned by the LLC. Will that affect my ability to get a mortgage?

I'm getting the mortgage to buy another investment property.

casey