All Forum Posts by: Cheryl Platt

Got it - thank you for the clarification

Thank you for your responses - we only plan to live in the home as long as it takes us to build our personal residence and then we will rent it out to someone else and thus is becomes a true income property.  

Should I pay the entire mortgage payment as rent or the approximate mortgage interest amount plus taxes/insurance?  

Do I have to wait to depreciate until after I move out?

Can I show a loss if I'm the one living in it or do I have to  wait until after I move out?

We definitely would not sue ourselves, but I do have 2 other properties in the LLC - what difference would that make?

I will talk to my CPA as well, but was wanting to get other's perspective so I really understand what questions I should be asking.  Are there any other questions I should be asking my CPA?

I am getting ready to tear down the house I am living in and build a new house in its place. While we are building, I would like to rent a home that we purchased through our rental property LLC. I know that I can rent from the LLC as long as I have a lease agreement for the fair market rent amount. I saw somewhere that I might get double taxed on the rent paid and the rental income? That I might not be able to deduct the mortgage interest, etc.? I guess I don't understand why that might be the case. If I'm paying the business fair rent for the property, have a lease agreement between the LLC and myself for fair market rent, wouldn't it be treated just like any other tenant's income into the business?

Secondly, for the time I am living there, if I don't pay the business rent what expenses can be deducted on the business taxes?

Thanks in advanced for helping me sort this all out.

Thanks everyone - I will try the routes yall have suggested and hopefully one of them will work!!

I have found a riverfront property that is currently being used as a vacation rental (and has been for years) and I plan to keep it as a short-term rental property.  The land is zoned commercial but the structure on the property is listed as a single family residence on the property appraiser's website.  I spoke with someone from Asset Based Lending about obtaining financing, but was told that the commercial zoning is a problem as they don't do commercial loans unless it is multi-family.  Is there somewhere I can obtain financing or will I need to see if I can get it rezoned.  The properties on either side are considered commercial, but they also have single family homes on them, but everything else down on the road is zoned residential.  I think it was all originally residential, but some of the properties got rezoned to commercial.  Not sure what my best option is.  Thanks for any advice!

I've sent an email to Matt Lents, but maybe you could answer this...  Could I sell the property to one of my kids and have the renter purchase it from them?

OK, thank you!  I will try contacting Matt Lents.

We have three lots with two houses on them that are all deeded together and are covered under a single property tax bill. We lived in the large house and the guest house was lived in by my daughter and her family until recently. Each house has its own address and we can split the property into two properties and sell the houses separately. We already have two different buyers, one for each house. I'm trying to avoid capital gains tax since the "property" was our primary residence for all but the last two years. If we split and sell the property on the same day, are we still liable for the capital gains on any portion of the sale? When we purchased the property, it was all deeded together then as well if that makes a difference. My other option is to sell the property to my investment property LLC and then split it from there with a back-to-back same day sale, but I'm not even sure if I can do that since I have a mortgage on the property that will need to be paid off and I don't have the available cash to pay it off. Any suggestions would be appreciated! Thanks in advance!