All Forum Posts by: Joshua Locke

Thanks everyone for the replies!  It makes sense I can't have it both ways and I now understand how to show that on my taxes.

Scott, I know the on base tax service is free, but I only used that once and never with rentals.  Thanks for looking out.

I am not an accountant but I about ready to hire one as I now own my 3rd SFH. Last tax year I only had 1 SFH and I learned a lot about what's taxable and what's not. The basics of deducting my itemized expenses and only counting the cash flow as taxable is fairly easy to understand. The problem arises with my 2 new properties... they are model homes that I purchased from the building company. The builder rents from me to show prospective buyers their handiwork while they build up the neighborhood and then when the neighborhood is finished being built I can either sell or continue renting since I own the property. It was a great option for turnkey rentals for an out of country investor (I am military overseas).

So here is my problem: one of the benefits of my contract with the builder is they reimburse me all Taxes, HOA fees, and Insurance costs when I provide proof of payment. Normally I would itemize these expenses and write them off on my taxes. I do have the receipts for them and everything is in my name, but I am not sure I can write them off since I am being compensated for them. Thoughts anyone?

This story makes me want to try it myself!