All Forum Posts by: Matt N.

My partner and I bought a home in South Florida end of 2021 with the intent of doing a small Reno and then airbnb/vrbo and then blocking out the dates we wanted to use the property. We live in Northern Florida and manage our 10 long term rentals and do flips in northern Florida and we decided not to go that route with this south Florida home after we started digging into it. Instead, as with a lot of south Florida wholesale deals- we ended up replacing and having to fix things that were covered up and two years later she was ready to go. Fast forward to the beginning of 2024- we started using Furnished finder and renting out nearly half the house on 30-90 day increments and were fully licensed as a short term rental. We fully furnished the home through FB marketplace and estate sales- nothing high end by any means, but very retro and mid century. My question is, what is the best way to describe this scenario for tax purposes. We keep half the house for our use year round but rent the other half out all year long. 2024 tax year will be the first year we depreciate the asset. The home is in our partnership LLC name as well. We have elected not to count any repairs or costs during 2022-2023 due to to it not being rented at all, not even calling it a second home. Our cost basis has been accumulating with our purchase price and then the 2 years of major repairs during 2022-2023 as well as taxes, utilities and insurance from '22-'23. All receipts can be documented as well over the '22-'23 year. Also, we're not getting anywhere near market rent for the home since its only half the home being rented, however we do feel that we're getting what similar efficiencies are getting in the neighborhood.

I have several rentals and am going to begin changing ownership from my personal name to single member LLC for each single family rental. I am doing this for liability reasons. There are no mortgages and I already have the insurance under control by purchasing a separate umbrella liability policy . DO I need to notify the tenant of this and do they need the lease to reflect the new Landlord name?

My partner and I purchased a property through tax deed sale in our personal names, March of 2018. We have been doing a quiet title for the past year and did not want to put in the LLC name until the court ruled in our favor. The quiet title is now complete. We are planning on building a spec home to resell. We were planning on putting the parcel into our double member LLC. If we quit claim this parcel in to our business LLC now and sell within less than one year from that transfer date, will the gain be considered long term or short term? Basically same owners as the LLC members, no additional members. Does the holding period reset?

I'm a little confused on the gas mileage deductions.  In years past I have purchased a property for rental purposes and worked on it myself for several months until "ready" to rent.  The properties are rented in the same year as they were purchased and I have deducted my mileage log for trips daily for working on the homes as well as trips to big box stores for materials.  My question is, should this have been added into the cost basis and depreciated over the life of the property instead? I do not put the properties for advertisement  until they are nearly complete.  If that is the case,  I am now finishing up on one I purchased late 2017, so cannot start depreciating that home until 2018.  Should I add my mileage expense into the cost basis for that one for 2018 taxes?  I am not claiming anything on that property on 2017 taxes because it was being rehabbed.  Any help would be very much appreciated. Thanks