All Forum Posts by: Dan Schwartz

@Dan Marl you’re gonna have to pay off the $227K mortgage when you get the new $510K mortgage.  

You’re borrowing $510K, but you’ll “only” receive $283K less costs at closing.  

Please be sure you understand all of this.  

There are also ways to use your stock portfolio as a line of credit without selling and triggering a tax event. 

@Rumen Mladenov that’s not at all how Fannie Mae looks at the rental properties.  

@Trevor Murphy

ACAT your portfolio over to Interactive Brokers and borrow that money at 1.5% next time.  Unless you’re tied up in MS-sponsored mutual funds that you can’t move.  

@Heather Minior I have to imagine that all of the major tax software available to consumers is up-to-date. They even update multiple times during the tax season. 

@Lorinda Fields if you have been filing 1099 income on schedule c without also filing a schedule se, you might want to have someone new look at your past tax returns.  

"I bought some real estate" is not some magic spell that makes taxes go away, like so many like to assume.

It is rather likely that the income generated by the real estate will generate a tax liability (in the current year, at least), but for the most part, the rental income has zero bearing on your W-2 income (should you have any), your interest and dividends (should you have any), your other businesses (should you have any), your non-real estate investment capital gains and losses (should you have any), and your personal deductions (should you have any).  Any one or more of those things can cause you to have a higher or lower tax bill in any particular year.

Just because Robert Kiyosaki famously called rental real estate "zero tax income," doesn't mean income taxes are zeroed out, globally.

Here are the instructions for Schedule E: https://www.irs.gov/pub/irs-pd.... You don't have to know the ins and outs, and you can certainly pay someone for their time in preparing it and helping you manage it in current and (more importantly) future years.  But you are investing in real estate and concerned about its impact on your taxes.  Print out the instructions (11 pages, but you can omit page 11), read it, and highlight anything you don't understand and want to get more education on.  Tax instructions are basically a choose-your-own-adventure novel.  Have a baseline understanding, and you'll get far better help from professionals in the future.

Good luck!

@Greg H. oh, for sure.  To be clearer, I’m also questioning the ability to charge for routine cleaning, even when the normal timelines are adhered to.  

@Jeffrey McKee did the property warrant cleaning beyond “normal wear and tear”?  If not, does your lease (or state refs) allow you to withhold the cost of post-move out cleaning?  Did you do a post-move out walk-through?

@Joseph Schommer good point.  I figured the extra capital was needed to buy more trees and open more lots, but yeah, a farm is an entirely different beast!  Good luck!

Because Quicken Loans.