All Forum Posts by: Jeff Nash

You pay taxes on your net rental income as you described and it’s ordinary income taxed at your applicable effective tax rate.  You can just look at your prior tax history in the comparison to get a sense of what that is.  Those expenses you described are the big ticket ones.

Just to clarify because I note a difference in location - homeowner's or landlord policy?  @Stanley J Black might be able to help.

Here is a step by step process - https://help.sos.iowa.gov/how-....  If you no longer need the entity you would file an Entity Dissolution.  

Hi Shirley, I’m originally from NJ and still have family there in Monmouth and Essex counties, along with plenty of longtime friends.  I have been in North Texas in the Dallas area for over 20 years and witnessed tremendous growth,  There has been an ongoing trend where the southern states have an advantage from many perspectives (cost of living and affordability, more favorable taxes, climate, etc).  The Jersey shore and surrounding areas are very attractive but you have to strongly consider seasonality and other costs like potential flooding and risk management that goes with that.  Anyway, I am not a realtor nor have I invested directly up there but those are just things that crossed my mind.  I have a longtime friend from Fair Lawn that is a realtor and can put you in touch with him if you want. I’ll connect with you, 

That might be possible if certain criteria are met and if it's structured as a TIC for example. If you owned the relinquished property and you are the only taxpayer, the relinquished property can't be under a partnership due to the same taxpayer rule.

It's probably too early for me to be thinking hard, but if I understand your question and fact pattern correctly if you sold this first property and met the Section 121 exclusion criteria you would not pay taxes on the portion of the property that you used as your primary residence while for the investment related portion you would if you sold it, unless you did a 1031 exchange for example. If you like the VA rate and cash flow you keep the home or do some creative financing perhaps with a potential buyer (get a down payment and set whatever terms you and a potential buyer would agree upon that is advantageous for both) and then use the installment method where you spread the tax over a period of time. There are a lot of what if's and I would of course need to better understand your full financial and tax situation.

More information would be needed like what is your tax situation (REP or not, AGI), when did you originally buy the property, what is it's value now versus when you bought it - how much it has appreciated (maybe you sell it?), are you converting it now into just a straight-up long-term rental, what are your goals? Depending on your answers to these types of questions, getting a cost seg done on an SFR might be justified. It doesn't always have to be a higher cost multi-family or commercial property to benefit you, but some preliminary analysis is needed. I'll connect with you.

If it’s not for investment I’d probably keep it simple and put it in your name or a revocable living trust if that is something you might consider or do.  I’m a CPA and not an attorney.  That might be better for financing as well if needed. 

@Denver McClure and @Harrison Sharp would both be good resources to discuss your situation.  

Like many CPAs and tax professionals, I’ve been using QuickBooks Online.  There are other a few other reputable providers.  For what it’s worth, I demoed Azibo yesterday after connecting with @Vicki X.on here.  It seemed to have many of the functionalities I would expect and like to see, and my understanding is that it’s free.