All Forum Posts by: Mukul Patil

Filing Schedule E for STR rentals is the right way but I am still unsure about filing form 8582.

Theresa's accepted answer implies that it needs to be filed: "it's a difference in how it's handled on FORM 8582".
However form 8582 seems to be only for passive income and STRs would not fit that description.

Shouldn't this part from the instructions for form 8582 apply? :

"If the activity is a trade or business activity in which you did materially participate, report any income or loss from the activity on the forms or schedules normally used."

I interpreted that last part to mean only Schedule E should be filed and not file 8582. The losses would then flow to Schedule 1 line 5 and then can be deducted from your ordinary income.

Hi,

I heard of Denholtz Properties through a post here however I haven't been able to find any reviews of them. They have a new development offering right now that I am evaluating.

Has anyone here invested or worked with them? Please share your experience if you are comfortable doing so.

Update:

The new tax rates have now been voted on. As anticipated, the tax rates have some down slightly so my tax did not go up by 55% (which was the increase in my assessed value). My property tax went up by 36%. That is still a very steep increase.

Also, I did hire someone to protest the increase. They could bring down the market value by only $3000. That translates into a tax savings of around $50 after fees. So not much savings there.

Thanks @Greg Powers, @Brandi T., @Dwayne Poster and @John Clark who pointed out that I was wrong to assume that the tax rate is static. Glad to be part of this forum where I get quick, instructive feedback.

So now that assessed values have gone up, the tax rate should come down unless the county inflates its budget proportionally. And when I get my final tax bill, the increase shouldn't be very steep. 

I couldn't find out the average assessment's percentage increase but mine seems to be on the higher end.

https://www.kvue.com/article/m...

Also, owner occupied home increases are limited to 10%. So as an investor I will pay a disproportionately higher share of the total tax. However it should still be less than the 55% more that I assumed initially.  I think we will only know the actual property tax number once the budget is voted on around August 2022. 

 I bought it 10 months back. I did some small interior improvements but they are not the reason for the increase. They do not even show up in the appraiser's report.

 No, I am talking about the proposed value for 2022. This is just the value of the home being raised. I will receive the tax bill towards the end of 2022.

In Williamson County, I am looking at a 55% increase in property taxes this year because my home was appraised that much higher by the county. Most investment homes in this area are seeing similar big increases in assessed values. To be fair, the value that the county has assessed is close to the actual market value, but still the big jump comes as a shock to me because historically the county's value had trailed the actual value by a large amount.

For people who have properties in Williamson County:
Does this year's (2022) increase seem highly unusual to you or is it just me?
Has anyone had any success in protesting the increase online at the wcad website?

@Sam Raj 

I own a home in Jarrell. The most attractive part about Jarrell is its affordability. 

I feel that as long as prices in the main city increase, the overflow will increase prices in Jarrell too. However if prices start to go down, they will go down much more in the outskirts, including Jarrell.

Renting has been fairly easy so far. Even though it is a small town, it has a 200+ unit apartment complex, which shows that there is demand for rentals there. On the flip side, the risk is that if prices in the main city go down in the future, renters will withdraw from Jarrell because most are commuters anyway.

Hi,

      This is for a rental property.  I paid using a credit card and the county charged me a service fee. This fee would not have applied if I had paid using a bank account.

Can the service fee be deducted as part of the property tax?       

Adding a fresh data point to this thread:
Rents have gone up significantly in Jarrell and now you can get a small positive cash flow even after paying a property manager.