All Forum Posts by: Natalie Kolodij
Natalie Kolodij has started 63 posts and replied 3635 times.
Post: Depreciation: Real Estate Profesionals
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You have a full-time w2 job?
And you're a real estate professional?
Do you spend more hours on your real estate specifically than at your w2 job?
Post: Depreciation Not Included on K-1
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Your K-1 Shows your share of net income or less
That INCLDUES depreciation
On the 1065 Parntership it reported: Rents - operating expenses - depreciation= net income/loss
That's what's in box 2 of your k1 , it doesn't show up separately. It is calcualted on the 1065.
Post: Can W-2 employee qualify for real estate professionals?
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Quote from @Joe A.:
I understand that you're unlikely to qualify as a real estate professional if you have a full-time W2 job. What if your W2 job was something based in real estate though? Say a construction worker or property manager, for example.
Only if youre >5% owner of the company. Having a w2 job that happens to be for someone in real estate doesn't qualify you.
Post: Can I use a property I haven’t rented yet on my P&L?
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Quote from @John Kilhafner:
Can I report a loss for a property I haven’t rented yet because I came across items that had to be fixed ? This property is just now being put up for rent almost a year later because of items that came up and slow contractors.
You can not report a property until it is in service. Costs prior to that will be captialized.
If you bought the property in 2022 but it wasn't ready and available for rent until 2023 then you will not report the property on your 2022 taxes.
Post: RE Investor friendly CPA recommendations.
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https://www.biggerpockets.com/...
Check out the Bigger Pockets Directory
Post: Tax deductibility for real estate personal coaching?
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No it's not.
You don't have a real estate business to deduct it against.
You have passive investments that happen to be real estate.
It was not ordinary nor necessary for you to take that course to invest passively.
Once you are a syndicate and need to learn those things for you to operate an investing partnership then you can potentially carry this over as a start up cost or something like that.
Post: Sold a rental for major profit, then bought other rentals with money.
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Unfortunately it's too late to utilize a 1031 exchange, which would have allowed you to potentially do this without paying any tax.
You should work with a real estate specialized tax professional to see if there are optinos to reduce tax owed now.
Potentially genreating losses on the new rentals acquired (if it was during the same year) can reduce your gain on the sale.
As-Is your gain = (Sale price- closing costs) - (original purchase price + renovations+closing costs- Accumulated depreciation) And that will be taxed as capital gains (rates vary depending on your bracket)
And the amount of that gain = the accumulated depreciation will be taxed at your ordinary tax rate up to 25%
Post: Depreciation is helping my taxes?
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Quote from @Lien Vuong:
Unfortunately its not that simple, you would need a REPS designation to take the full deductions from the scenario you outlined. Taxes is not for the faint of heart - dont feel like you're dumb, there's a reason there's an entire career dedicated to this.
They actually wouldn't.
Passive loss limits start to come into play at AGI > $100k...and after $150k is when your passive losses carry forward.
If their w2 income is $100k- after their personal deductions and any applicable credits they should be under $100k and be able to write off up to $25k annually generated by their rental.
Post: Real estate professional status
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Nope- Only one needs to qualified as long as they file together.
Post: Taxes & deducting rental property taxes & insurance
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Quote from @John Morgan:
Quote from @Linda Weygant:
Quote from @John Morgan:
Quote from @Linda Weygant:
Quote from @John Morgan:
@Paolo Ertreo
Just write the amount you paid. If you ever get audited which is very rare, then it can easily be found later on.
This is quite possibly the worst tax advice I've seen. And I've seen A LOT of crappy TikTok Tax advice.
Just because there's an amount paid at the website, that doesn't mean YOU paid it. As per Paul T's excellent original answer, there are several reasons why this would be a bad idea.
If he bought the house in December...the prior owner is who would have paid them.