All Forum Posts by: Joel Trout

Hello Leslie,

I can't help you with finding lenders, but I invest in long term rentals in Cadillac Michigan and can help with any referrals that you would like.

I had one property in an LLC and one in my personal name when acquiring my personal residence FHA loan. The lender considered all monthly debts and gross income and included them in the DTI ratio for the property in my personal name. For the property in the LLC, the lender only considered the net income reported on my schedule E as income and did not include any of the debt.

Joe splitrock. I'm sorry you are confused. $500 was one years rent. (365 days) Yes,  the property was used for a farm that I owned(4 years ago) but I moved and could no longer farm the property,  so I rented it out. There was no residence on property, so I couldn't claim it as a residence. I didn't sell the property until 2021.

I think the problem was resolved.  The accountant saw the deduction for the second property on my Schedule F in for prior years,  so he didn't know to put it on the schedule E now that I'm renting out the property.  (Seems obvious to me) but I re-explained to him over email that it should go on the Schedule E, and it seems like he just didn't understand that it was converted from farm property to investment property. I explained over the phone,  but something just didn't connect until I wrote out line by line what the Schedule E should say. So basically I had to do his job before he understood what he was suppose to do. 

Haha,  Anthony King. I paid off the mortgage and raised the rent 600% so it would have cashflowed pretty decently this year, but I just sold it a few days ago. Needed the capital.

Joe splitrock they wouldn't put the second property on my schedule E because it showed a loss and according to them,  there is no way I can use that loss or roll it over since I do not itemize my return. And also I cannot use the loss on one property to offset the gain on another property unless I itemize. 

According to my CPA, my net rental income would be $500. (Profit on one property) and since I don't itemize,  the loss on the other property is not counted.  He said a loss on one rental property cannot offset the gain on another unless you itemize. 

@Dave Spooner, it was like the following:

property one: income: $2500, expenses: $2000

property two: income: $500, expenses: $2800

Hello BP community.  I have 2 rental properties. One shows profit, and the other shows a loss. My accountant says that I can't deduct the losses because the "standard deduction" is higher than my losses. So there is no reason to include the loss property on my schedule E. Is this correct or do I need to find a new accountant?

Yes amy