All Forum Posts by: Nicholas Aiola

@Drew Sing Great question but rental losses are passive and cannot offset portfolio (e.g., capital gains other than from RE/passive investments) or nonpassive (e.g., your W-2 income) income if your MAGI exceeds $150k, unless you are a REP. Without the REP designation, the rental losses generated from the cost seg would be suspended and carried forward to future years.

@K Luu

The early distribution would be subject to the 10% early withdrawal penalty plus income tax. 

@D. Gozman In that case, the property is considered to be "idle" and operating expenses would still be deductible.

@Francisco Rosas Yes, Form 3115 will correct the issue and allow you "catch up" on all missed depreciation.

@D. Gozman If it was never placed in service, almost all expenses will be added to the basis of the property and will not be deductible as operating expenses.

@Lawrence Barnes It's possible but there are too many unknowns for me to say for sure. It will depend on whether or not your business is "doing business" in Alabama. The easiest way to find out would be to either visit the Alabama SOS website or call the Alabama SOS.

@Tommy Ngo

@Eamonn McElroy, @Ashish Acharya, and @Bill Hampton (won't let me tag Bill for some reason) are all located in Atlanta.

@Eric Little $9k of income. Whether it's considered interest income or ordinary business income depends on if the HML is in the business of lending or not.

@Mike Maxwell This link explains CA'S stance relative to your situation:

https://www.ftb.ca.gov/file/pe...
I would file in MO even if the rental operates at a loss.
If your wife did not physically work in VA and there's no VA withholding, there likely won't be a VA filing requirement.

TX does not have a state filing requirement.

@Rachel Joe No, that would not be included in selling costs - it would be considered a personal expense. Maybe someone could make a case for it being an extenuating circumstance in the unique situation of a global pandemic which made it necessary for you to move out of the home temporarily, but that someone would not be me.