All Forum Posts by: Mary Jay

So I have lived in a house, in an expensive neighborhood for 10 years, my child grew up there so I am very attached to that house and so is my son. It is 550K now, rented but its too big 5 bdr 3 baths so its always a big family that wants it and usually they trash it. I was thinking, if I want to sell it, the only way to persuade myself to sell it would be if I bought a smaller house in that area. A smaller house, 4 bdr 2 baths cost around 500-550K as well... I found one for 450K... It will rent for 2-2.5K... The mortgage payment will be 3.5K. If I buy it I will be losing 1K per month... So my plan was to wait till the market goes up and the house where my kid grew up becomes 800K then I will sell it and at least I will have that 4bdrs little house there in the same neighborhood... At the same time, by the time the market increases in price I will be paying 1K per month towards the mortgage to cover what the rent wont cover, so its 12K per year of loss (if I get a good tenants and nothing breaks), then who knows even if the market does go up... I am not sure... At the same time, if I dont buy an alternative, then I will never be able to depart with my expensive house that is a bad rental... One smart person, who is a super smart investor said: "Its just a box"... I get it, but I am an idiot and feel like crying when I think about selling the house where my kid grew up, even though its a bad rental...What would you guys do? Would you buy a smaller house that will bring a negative cash flow so you could eventually depart with the bad rental?

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Quote from @Shaydon Childers:

Hi Mary, I have a SF rental that is in an LLC. I asked around for a HELOC and got turned down by a few lenders. One offered me one but they wanted my to draw 70K immediately so they could start charging interest. Then my credit union (BECU) whom I bank with but don't hold the mortgage with offered me one with no automatic withdrawal requirements. The current mortgage is a conventional fyi.

Thank you! Great info!

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Quote from @Ko Kashiwagi:

Hi Mary,

Do you currently have a conventional loan on this property? Most HELOCS are for primaries in personal names, but this could still be possible. If it's financed already with a conventional lender, it's best to ask them.

Its an FHA loan and we live in one part of the duplex

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We live in a duplex and rent out the other part. Can we open a Heloc on that duplex?

That duplex is in an LLC

Thank you!

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A friend of mine said she won't allow to tenants rent unless they provide a proof of the animal policy for their pets or rental policy for the tenants possessions. She makes them show the coverage to her.

Isnt the fact that the tenant signed in the lease that animal/rental tenants policy is mandatory and the tenant guarantees to have it, isn't it enough? Do you guys make your tenants show them to you before you allow your tenants move into your property?

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Hi guys,

I am Looking for a handyman in the Hobart/Portage/LAke station area

Can you please ket me know if you have one in mind?

I need help with a general handyman stuff, change the light bulb, paint, etc...

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Hammond, Indiana

Thank you so much guys! You are all super helpful!!!

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thank you guys!

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Jacksonville, Florida

Am I obligated to deduct everything I can?

I thought what I chose to deduct and how I chose to deduct is my choice and my desire?

And if we did not take a deduction on something are we obligated to amend the tax return if we missed a tax deduction?

thank you!

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Quote from @Nate Meeker:

@Mary Jay - Potentially if it was a clear mistake, but potentially not in the event you are currently choosing not to include the expense or amend it and fix it. The IRS looks at intent often. Your intent right now is playing a game so they could disallow it.

The IRS's long-standing administrative practice is to recognize amended returns that correct clear errors or plain mistakes on originally filed tax returns (Klinghamer v. Brodrick, 242 F.2d 563 (10th Cir. 1957)). Despite this, the treatment of an amended return is a matter of administrative discretion (Fayeghi, 211 F.3d 504 (9th Cir. 2000)). As a result, the IRS's refusal to accept an amended return is subject to judicial review only for abuse of discretion (Miskovsky, 414 F.2d 954 (3d Cir. 1969)).

If the IRS has the discretion to accept or reject an amended return, the question then arises: Is a taxpayer required to file an amended return when an error or omission is discovered on an originally filed tax return? Regs. Sec. 1.451-1(a) states that "if a taxpayer ascertains that an item should have been included in gross income in a prior taxable year, [the taxpayer] should, if within the period of limitation, file an amended return and pay any additional tax due" (emphasis added). Regs. Sec. 1.461-1(a)(3) contains similar "should" language with respect to amended returns and the discovery of erroneous deductions taken in prior years.

Great info! Thank you!
Where does it says "should" amend if deductions were missed?

Am I obligated to deduct everything I can?

I thought what I chose to deduct and how I chose to deduct is my choice and my desire?

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All Forum Posts by: Mary Jay

Mary Jay has started 258 posts and replied 1265 times.

Post: Should I buy this rental?

Post: Heloc on a duplex that is in an LLC

Post: Heloc on a duplex that is in an LLC

Post: Heloc on a duplex that is in an LLC

Post: Check on animal/rental tenants policy?

Post: Looking for a handyman in the Hobart/Portage/LAke station area

Post: Are we obligated to amend a tax return if we missed a tax deduction?

Post: Short term rentals in Palm Coast

Post: Are we obligated to amend a tax return if we missed a tax deduction?

Post: Deductions that are too late to deduct during an audit