All Forum Posts by: Scott McMillan

Nicholas I sold a property in 2020 that I bought in 2009.  While starting to enter my Schedule D asset disposition worksheet in Turbo Tax, I realized that the original loan's (was since refinanced) title charges were never added to the cost basis.  Therefore the cost basis the property had been depreciated with for the last 11 years was too low, as it was missing title fee's etc.  In addition, the accountant had never created a separate depreciation schedule for the loan costs (30 so those weren't depreciated or written off the year when I refinanced and started depreciation the second loan fee's.

Now that I have sold the property and realized these long running mistakes, can I add them to my basis now to make up for the missed depreciation or do I have to correct 11 years worth of previous returns?

TIA you're an amazing resource on bigger pockets!

@Nicholas Aiola My rental became vacant in November 2019 and I listed it for sale.  It's under contract now and will close in 2020.  When do I stop depreciating the property, when it went vacant, or when the sale closes?

TIA!

Hey @Nicholas Aiola,

I am using my HELOC to purchase another property, should the interest expense be written off the property the HELOC is taken out on or on the newly purchased property, or does it not matter since both homes are reported on my personal income.

Thanks!

@Thomas N. P.S. I think either you or your wife would have to qualify as a real estate professional to claim those loses with your income level.

Wow sorry to ask something that had literally just been asked but I honestly had not read through the whole post, such a coincidence that someone had thought that question just before me.

Hey Nicholas, 2 questions unrelated. I had never thought of this but it came up for renewal this week. I have an umbrella policy that covers my rental property as well as my other assets. Should I be writing off the umbrella policy on my schedule E? A portion of it, although I wouldn’t know how to allocate how much of the cost is from the rental? I also have LifeLock for identity theft protection, could that be a write off on my schedule E as well? The new tax laws have moved me from itemizing to the standard deduction, asset protection aside, should I focus on paying off my primary mortgage since I can no less get wrote off the interest? Thanks!

Robert I don’t know how you are sourcing your deals but there are a number of potential flips in my neighborhood if you can acquire the house. Since I’ve moved in to my house which was also a flip I’ve seen about 12 other houses done in the last 2 years.

Rosetta did you not use a lawyer during the entire process? I was under the impression that a lawyer is required for each the buyer and the seller in all NY real estate transactions.

This is a fun group and more importantly free!  No one trying to pitch anything and the monthly presentations are from subject matter experts and extremely helpful.  I would encourage anyone thinking of attending to do so!

Hmm maybe we are looking in different parts of Lawrence, my research shows no recent crime in its neighborhood recently, has the lowest risk rating.  What part of Lawrence were you in? I'm in the Arlington area.

@Account Closed what has been disappointing about Lawrence, I'm looking at a 4plex right now $45k a door renting around $600-$650.