All Forum Posts by: Paul Winka

@JD Martin

Wow, this is disappointing. It would seem that the lion's share of the $35K rehab budget will not do much to up the value of the $46K acquisition costs. I'll capitalize what I can (new appliances, plumbing fixtures) but this should have no bearing on when the in-service date is?

@Matthew Kreitzer @Christopher Phillips Thanks for the responses. 

I am not intending on doing this for long term. Just for a short while until the LLC finds another tenant besides me late next year. The back story is that the property must be owner occupied for one year because it was bought from HUD as owner occupied, non-investor. I paid cash for the house, so it will be easy to put title into the LLC name, no balking mortgagees. So why not let the LLC have me as its first tenant? I can check the box with HUD, cut my tax bill, and make my neighbors happy by fixing up this place.

Matthew, I am not sure what premises liability has to do with it or it is a real risk. I am just a small-time investor that wants to deduct some repairs. Is it really relevant or something I should be concerned about? 

I made another post today about this if it helps explain it better. Yes, I'd talk this over with an attorney---for now I am gathering information so I can ask smart questions and see if it is even possible. Any other input? 

Thanks, even though that's answer I was expecting but not hoping for. Darn. 

I don't mean to overly complicate this, but the ARV of the house in that area would be around $85K. Should I use the ARV as the depreciation base? Is the value to start at for depreciation come down to my choice within reason? Not sure how this works with situations with forced equity...

Is it possible to do this? I am trying to think of a creative way to put a property "in service" to be able to claim schedule E deductions. Yes, yes, there is a back story to this. 

Got it. I have a couple of properties that are out of state and handled by a property management company and have had those for 10 years, so I would hope that an Audible account wouldn't be seen as a questionable deduction. 

On another note, since you just mentioned getting a property in-service ASAP,  I just posted a separate question just now about putting a property in service or which your input would be especially valuable. 

I just bought a house in my name that I intend to rent out. I paid $46K for it and closed on 14 Nov. It needs around $35K in repairs, and those repairs are ongoing now and should be finished by 25 Dec. I would like to write off the repairs to this house this year. The intent is to rent out this house. 

Is the house "in service" now, or can that only begin once a certain milestone is reached, such as attaining an occupancy permit or a lease start date? What could I do to deduct these expenses this year? 

Wouldn't the time to claim this subscription as a deduction come April take around the same amount of time responding to a BP forum question? Why wouldn't one do it? 

Just bought a HUD homestore property that I'm rehabbing with contractors. The house is in my name of course, and I have been paying contractors with my personal credit card and by checks from an LLC bank account (I know, I know. Comingling is bad, but too late for this one). I'll do better on that next time.

My intention is to rent out this property next year. But for now it is just my place and will be living in it after the rehab for a short while. 

Do I need to have contractors complete W9s and issue 1099s since it is just me as the owner? Would the answer change if I am anticipating renting out the property as an LLC next year?

I came across that verbiage in 308 also, but it didn't seem to be referring to simple bug screens, but had me picturing the wire that's baked into glass that you see in some commercial buildings like police stations and schools. The 312 reference implies a screen would be there to catch glass but doesn't just come out and say it. This is like interpreting the bible---what's the real message here? Hahaha, I'll just put in my screens---I just got some big-time relief on what I thought I'd be paying for bringing smoke detection up to code so I can flex here. :)

@Manolo D.@Eugene Kemp@Chris T. Well, I talked to the inspector that came out to do the electrical verification inspection before the electric can be turned on. I am sure glad I asked because the code is not nearly as stringent as I though it would be. Just need battery-operated smoke detectors in each bedroom, hallway, and in the basement near the stairs. No hard wire, interconnection, monoxide detection ability, or combination smoke/monoxide ability necessary. 

But wait...a 3-pack of these detectors with 10-year batteries DO happen to offer interconnection, but they are also hard wire: http://www.homedepot.com/p/Kidde-Worry-Free-Hardwired-Inter-Connectable-120-Volt-Smoke-Alarm-with-10-Year-Lithium-Battery-Back-Up-3-Pack-21025981/205422332.

Do these type of detectors' interconnection ability only work as hard wire?  OK, let's say they don't have interconnection without being hard wired. Will they still work as well as a stand alone for 10 years if they are NOT hard wired and working off just the battery like just a regular battery-operated detector? I would say so, but don't want to assume.