All Forum Posts by: Kyle Meyers

If a driveway costs about $1000, and this one is 3 times as long, so we assume it would cost $3000. And is expected to last 15-20 years, we will use 15. You would have to budget an extra $200 per year for this cost because of the additional size of the driveway. And every other year seal-coating would cost about $250 instead of $100, so another $75/year beyond the norm. So, in all, an extra $275 per year conservatively. Certainly not a deal killer, but something to add into your calculations when deciding how much you can offer.

Of course, you may also be able to charge additional rents if the set back adds to the property. Depending on the market, tenants may be willing to pay more for the larger front yard and/or added privacy from the extra space between them and the street.

Sources:
http://www.paccrestinspections.com/life.html
http://www.fixr.com/costs/pave-driveway
http://www.costowl.com/home-improvement/landscaping-sealing-asphalt-driveway.html

I think a lot of this will depend on the way you held the deposit and how your lease is worded. If they are all on the same lease and all paid the deposit, then they clearly did not vacate. Did you collect 3 separate checks for the security deposit? Even if they all paid that individually, I think you still did not have to do anything in regards to the deposit yet. Did the two who are still living there pay in larger portions of the rent so you still got the same amount each month?

I think you should probably have a quick chat with an attorney to make sure the law backs you up, but I believe you can leave the deposit untouched in the names of the 3 original tenants until they have vacated or the lease is changed. Once you get a new lease with the new roommate, you should probably collect a new security deposit from the 3 tenants who will be living there, and refund the original deposit (less any damages) to the original 3.

The situation is a little complex, so get some legal advice. I posted on here a couple months ago about a company called LegalShield, they offer a monthly rate (about $17) to have unlimited discussions with an attorney about these kinds of things. I usually call them once or twice a week with quick questions, they may be a good solution for you to use to get some advice on this situation.

Line 211 is for taxes unpaid by seller being credited to buyer. As per Steven's explanation above, schedule E would not be effected, but the basis would be increased.

So I add up all my deductible miles which are not commuting when searching for properties and making offers as I go and capitalize them for with the next property which I actually get.

Would this apply to tax liens as well? If I drive to look at the tax lien properties and go to the auctions, I would add them to the basis of whichever properties I get possession of?

I still believe I meet the requirements. I have no job other than landlording and real estate investing. I easily spend 750+ hours per year. I am working on putting all my time in my google calendar so I will have sufficient records of the time spent if I were to ever be audited. However, I do not see myself ever having a $25,000 taxable loss, so hopefully I will never need to make use of being a real estate pro.

Buy and hold, and I also buy tax liens with the goal being to acquire more rentals by tax deed.

If I drive to look at properties to buy or buy liens on and do not buy the property or the lien, is there a way to deduct that?

I currently run most everything through my own name, but I may set up an LLC soon.

I have met the requirements to be classified as a real estate professional, what effect does that have?

Steven,

Another question for you:

How should expenses which apply to my overall rental business be reported/deducted. For example: costs of education, real estate club membership fees, mileage deductions for looking for properties to buy which are not ultimately purchased, legal costs for lease review for form which will be used on all properties. Should these be split up between my properties for schedule E, or should I put them on schedule C?

Thanks again.

Sorry, I misunderstood. If they charge you twice for the same thing, it seems like you should get your money back from one of them. Contact them to point out the error, if that doesn't get you anywhere get an attorney.

Charges for normal wear and tear cannot be deducted unless the charge is disclosed and agreed to in the lease, for example if you lease stated you must have the carpet professionally at move out. I had a similar situation this summer, I moved out of my apartment and when they sent me the list of charges, there were no repairs, but there was an $85 standard cleaning charge. When I called the office, I was told it was a charge for everyone who moves out to cover the costs of cleaning for the next tenant. Since this was not in the lease at all, I had my attorney send a letter requesting the return of the $85 with my deposit, the apartment complex's parent company responded quickly that they would comply with my request and about a week later I got a check for my deposit without the $85 being deducted. Try to contact them about it and see if you can get your charges returned, or contact an attorney.

Steven,

It burned down in July, I found out in October (made a trip to look at the properties before I filed for the deeds). The property looked to be vacant before the fire and was not in great condition. The title search showed there was a mortgage, which I thought would require insurance, but I have not been able to determine if it was covered. I have been speaking with my attorney and my insurance agent about different options.

The property actually burned down and the cost to demolish the remaining structure would be higher than the value of the land. I think the best option is going to be to walk away from it, it was only a small investment. Do I report the loss on schedule D?

Thank you.