All Forum Posts by: Sean Wallace

Thanks for all the replies everyone. I decided to go on Turbo Tax and have someone do it for me on there. It's taken me all day to upload all the documents but I have a CPA reaching out to me to go over everything soon. Definitely keeping things more organized from now on though.

 I really love my agent/broker, she is always on my team and always tries to do what's best for me and my family. I would look into getting a new one if you don't feel you can trust them.  

Following because I would like to know as well. Doing them myself the past two years has got me in a bit of a jam. 

Thanks a bunch for the reply! 

I really wish I could get some to call me back. I've had one call me but he didn't seem to be interested in doing the amendment. 

I just found out the method I used for depreciation. Do you now if the depreciation always goes off the tax valuation from the year you bought it or do you use the numbers from each years land valuation?

Rental property is a duplex.

2019 - Lived in one side, rented the other. Claimed depreciation. (Not sure what options I chose to depreciate with.)

2020 - Lived in one side, rented the other. Did not claim depreciation. (Didn't want to do it wrong because I didn't remember how I did it in 2019.)

2021 - Rented out both sides. Doing my taxes now and want to claim depreciation. (Still not sure how I did it the first year.)

I know I'm in desperate need of a CPA and should have used one to begin with but I'm learning as I go & Currently, I cant find a CPA that's taking new clients.

I have some very confusing questions regarding this situation and an answer to any of them is much appreciated! 

Questions. 

1. Does it matter what options I picked? e.g - 27.5 year property, 25, year property. Also MACRS 200%, 150% or straight line.

2. If it does matter what I used the first year. How do I find what I chose? (Does not show on transcripts from IRS & cant find it in transcripts from the software I used.)

3. Do I HAVE to do the amendment for 2020? If not what am I missing out on if I don't? 

4. Does me renting out both sides in 2021 and in future years change the way I have to do it even if I found out how I did it the first year?

5. If it does change the way I have to do it do I need to let someone know I'm changing it and why?

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $180,000
Cash invested: $10,000

3, 000 square ft duplex. Currently house hacking on a FHA loan.

What made you interested in investing in this type of deal?

I have always had the real estate bug (thought I would be an agent) just didn't know till recently that I wanted to buy & hold. I had a roommate in an apartment I was charging rent that let me see how profitable it could be.

How did you find this deal and how did you negotiate it?

My agent found it for me while we were looking at a quad. They were asking 210k for it I offered them 180k they came back with 200k I returned my 180k and they accepted.

How did you finance this deal?

FHA loan with 3.5% down

How did you add value to the deal?

I did a lot of landscaping and power washing and when tenants move out I'll be redoing their floors. When I find my next ill be redoing my side.

What was the outcome?

It is currently appraised somewhere around 219k

Lessons learned? Challenges?

I think the answer to both is that buying your first property is a long and stressful process and you will be doubting yourself the whole way but it will pay off in the end.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent was absolutely amazing! The lender I'll never use again and the contractor I used I wouldn't wish on my worst enemy.