All Forum Posts by: Swati Patel

Hi all, appreciate your time in reading my post and taking the time to respond. My question is as follows.

I bought my rental property in 2016 for $300K and the property tax letter accessed land value as $120K and structural value is $180K. Fast forward to 2020, the value of the rental has appreciated to $330K and property tax letter has now assessed land value as $130k and structural value as $200K. 

Which number of structural value should I use for cost basis? the value from 2016 when I purchased the property or the recent value?

If I use the recent value, then every year the cost basis will change because the accessed value is changing every year. 

Thank you @Robert C., @Matthew Talmadge and @Basit Siddiqi for your responses. This clears my doubt that I can't take partial deduction and that I will have to take full deduction and that I can carry over losses to following year. 

Followup question - Say after couple years of carrying over losses, my losses eventually becomes greater than the income for say year 2022, then could I skip taking depreciation entirely for that year? Or am I *required* to take depreciation no matter what?

Hi all! I had a question when I started doing taxes for my rental property for the year 2019. The unit was rented for the entire year. So here's the scenario.

Total income from rental = $10,000

Expense (including repairs, mortgage interest, taxes but not including depreciation) = $6000

Depreciation for 2019 is about $7000. But if I take the entire depreciation, my total expenses comes up to $6k + $7k = $13k which is $3k beyond my income. 

So here are my questions.

1. If I take entire depreciation of $7k, and have $3k in losses, can I carry over this loss into next years taxes for the rental?

2. Or can I take partial depreciation of $4k just enough to offset the income?

Your expertise in this matter will be appreciated.

Hello BP Family. Though I'm not new to real estate investing in Bay Area (I own 2 SFH in South Bay), however I am new to commercial investing. I want to learn how to spot and analyzes multi unit family rentals, how to search for good property managers and learn more about commercial loans. Where do you recommend I start?

If I want to start investing in multi unit family in south bay, what's the minimum cash I require? 

Note: I don't have time to flip or add value to the property. I would prefer buy and hold strategy.