All Forum Posts by: Jennifer W.

Thank you Natalie. I truly appreciate the response from an investment tax professional. I didn't want to file incorrectly and was more worried that she didn't understand the STR perspective when handling our taxes. Your response makes me feel better that she does understand and is looking at it the correct way. Thank you for taking the time during the busy tax season to ease my mind.

I am working with an EA to handle my 2022 taxes. I rented out the upper portion of my primary home as an STR for 3 months in 2022. I would like to write off some improvements made to this area of the home to get it ready for rental as well as my home office. The upper portion of the home is also used by us when its not rented for entertaining. I also have a W2 job but home office is used for rental business and the like.

I am being told by the EA that I will now have to use the depreciation on my primary home since we the upper portion for 3 months and that this will complicate things when I go to sell and pay those taxes back. They are asking questions as to when I bought the home, for how much and cost of remodeling over the past 8 years so she can add it to total value of home. I am worried that it is over complicating the situation and setting us up for further issues in subsequent years should we decide to no longer rent it out as STR. Is this the way the taxes on the 3 months of rental should be handled? Can anyone refer to me a tax pro in Minnesota for future years?

Thank you.

Furnished Finder for both is the one that I hear about the most but have not tried it yet myself.

All the best in your venture.

I own a condo and cannot determine if I should sell or keep it for future rental income.  I currently lose about $25 a month after mortgage, insurance, property taxes and homeowner fees.

Facts:

Purchase price in 2005 - $170,000

Current approx value - $195,000

Owe $100,000 on an ARM currently at 4.3% which adjusts in October yearly but cannot fluctuate more than 2% points.

I could raise the rent slightly but try not to because the tenants are so wonderful. Same tenants for past 5 years who are fantastic and great at fixing issues on their own.  It's easy. Mortgage paid by tenant and I gain equity.

Should I pay it off and continue rental income into retirement? (I'm 52). 

Or sell it and use the money to buy a STR/MTR that may have more monthly potential?