All Forum Posts by: Buddy Holmes

@Shawn Clark ,thanks for the note.  That is the way I look at it too. It is definitely an expense but if these expenses turn into money making investments, the income-expense gets reported on a specific Schedule E  and I am told that if the expense is pre advertising date for a rental, they they are to be capitalized into the purchased rental or other property only to be recovered when depreciated or sold.   See @Brandon Hall blog on BARRR vs BRRR. But what about the expenses of the dry hole look-sees? Where can such an expense be reported?

Cheers,

Buddy

Hi @Mindy Jensen, Excuse me I did find it a few minutes later.  My problem was my hand (actually finger on old IBM eraser head mouse button) is generally on the cursor pointer and when in that area your blue button is covered by one of the two drop downs.  Might I suggest you move the blue button a bit to the left or the two drop down a bit to the left for the old anal poor eye sight guys like me? :>))

What are the IRS rules on deducting expenses for Real Estate investing efforts?

I have several current rentals which are reported on Schedule E.

However for "Driving for dollar" expenses, trips to check out DST investment properties, trips to check on unimproved properties, etc. These do not seem to be appropriate under a Schedule E and I have found reporting expenses on Schedule C to be a bad idea. So what about these?

@Amanda Han, @Brandon Hall, any thoughts?

@Mindy Jensen OK I give up, has something changed or is my mind slipping?

I can not find how to start a new discussion in this forum!  

Sorry Mindy it was my mind, or rather the drop down that kept hiding the big blue post button when my ever present cursor got to that area.

In any case, I have a question on re-financing (REFI) a rental property. I have a couple that have some equity and would like to do a cash out REFI. I have heard somewhere that the IRS might not allow the interest paid on such a REFI to be deductible on Schedule E.

There is a question on Turbo Tax about "have you re-financed this property?"

Cheers,

Buddy

@Mindy Jensen  OK I give up, has something changed or is my mind slipping?

I can not find how to start a new discussion in this forum!

In any case, I have a question on re-financing (REFI) a rental property.  I have a couple that have some equity and would like to do a cash out REFI.  I have heard somewhere that the IRS might not allow the interest paid on such a REFI to be deductible on Schedule E.

There is a question on Turbo Tax about "have you re-financed this property?"

Cheers,

Buddy

@Charles H., Welcome to BP!  I too worked for that company in Savannah for 21 years.

I retired a while back and have added to my SFH rental portfolio to supplement retirement.

I currently live in Charleston and have found it is a good investment market.  I also have found Ormond and Daytona Beach a great area.  Happy to chat or help.

Cheers,

Buddy

@Lendell Williams, hope you can make it!  @Mark Mattison and I started a 3rd Monday meet-up a few months back and have had 3 or 4 meeting so far. This is a new location so we hope it works out as well as the Steel City location.  We are not Agents or involved in any sales effort but just wanted to meet like kind RE Investors and would-like-to-be investors.  Looking forward to meeting you.

Cheers,

Buddy

@Bobby Wallace,   Wow got your Hog in the House! Cool! Please plan to joing us on the 16th of October.

Hope to meet your there! Cheers,

Buddy

@Linda Weygant,

No complaint at all about Turbo Tax. It was was definitely my bad decision to use Schedule C.

@Christopher Smith,

Thanks for the advise.  If you can recommend a particular Representative, I would certainly appreciate a PM about them.

My main idea was just to open a discussion on IRS Tax Audit experience.

For a teaser, I will say the first audit demand was for ~$%51k; The second for ~$15k and the third will be perhaps ~$12k.   From my own point of view I did turn up an input error which amounts to owing ~$3k Which I am happy to correct.