All Forum Posts by: Natalie Kolodij

If you're doing delayed financing on your BRRRR make sure your accountant also separates out the renovation costs.

I've had them combine it with purchase price- and then essentially allocating a portion of renovations to the land value because they kept it togehter before allocating. 

Working wiht a REI specialized tax pro will make sure you're getting the best benefit of everything

I like Stessa- any RE specialized tax pro knows it and can use it's reports. 

If they haven't heard of it- goood chance they're not a good fit for an investor. 

QBO is good / necessary if you have a partnesrhip/ corp return of any type- but also it's easy to mess things up in QB yourself if you don't know accounting, so I typically recommend people use or have a bookkeeper who review type thing. 

That accountant is an idiot. 

Find a real estate specialized tax pro here on BP. An LLC or entitiy does not change the way your rental income is taxed/ or whether you can deduct expenses.

Actually moving your primary/house hacked home into an entity coudl haev cost yout he option of selling it tax free in 2 years as well. 

This can matter if its a single member LLC or a Mutli.

Working with a good tax professional can get this squared away for you.

Starting point is knowing if that's an investment property or just a vacation home for you? 

If it's a rental then your expenses are deductible (or can be capitalized/depreciated) regardless of your state you personal occupy in. That's completely unrelated.

Fl also has no state tax- so there is no state issues for tax reporting. 

Federally you report and claim all income/expenses for any business in any state (so if this is a rental) its reported

It's not like a "path" It's just the correct thign to do. 

Interest is deductible against it's use- not what secures it. 

So the interest related to deach down payment is deductible against the house that downpayment was on assuming it was for busness use. 

To the IRS you don't have an actual business yet. 

So like an actual business expenses start being allowed once the doors open so to speak. 

IRS likes a matching principle- you get to write off expenses of thigns that are business assets earning you money. 

The house isn't finished yet to earn money yet/ie business isn't open yet. So not deduction yet.

No- if no material participation and your w2 is over the $150k mark the rentals will be passive. 

This means that any losses incurred will be allowed to: 

-Offset any other passive income sources

-Will then carry forward until you either have passive income, AGI drops, qualify as material participation, or RE professional

-Be alllowed to be deducted when a rental is sold 

Every Syndicator and Syndicate investor in this thread: YOU CAN TOTALLY DEDUCT THOSE LOSSES

Every tax professional: Many people can not actually generate the losses syndications generate year to year due to 469 rules

Any ordinary and necessary expenses are deductible. Some larger repairs may need to be capitalized and depreciated though. 

Short term rentals fall into an in-between where your material participation and average stay length can technically make losses deductible against your w2 income regardless of your adjusted gross income. 

But I'd recommend working with an REI specialized pro to confirm based on your situation.

If your short term rental doesn't qualify and is still passive than whether you can deduct losses against w2 income dependsing on if your AGI is over or under $150k.