All Forum Posts by: Taylor Brugna

Loretta Chavez If your income is >150k your losses will have to be carried forward but is wrong to put rental interest and taxes on schedule a as an itemized deduction. You can't just decide to put certain rental expenses as personal deductions b/c of income phaseouts.

@Jesse Fernandez  I grew up on Long Island and also invest in Florida! I highly recommend @Jeff Copeland..reasonable rates and is extremely responsive. He manages 15 units for me. 

Jeff Copeland is one of the best in the area, highly recommend. Manages 15 units for me and I've been very happy.

Alvin Holmes Just my 2 cents but you most likely won't find a competent CPA wasting time during tax season working in turbotax to property report a 1031. Hate to be negative but the reality is it's not designed for accountants to use and has so many limitations. There's a reason why we use professional software! Maybe you should consider outsourcing, I can pretty much guarantee it'll be worth it in the long run..Best of luck.

Susan O. Without knowing the specific details about your travel, If deductions are legitimate and allowable, TAKE THEM. Plain and simple. It's our job to know what's allowable and what can be defended in the case of an audit. Sounds like he just wants to avoid a "potential" hassle here. Reminds me of the home office myth that is always asked about.

@Christian Reyes NY is an interesting market..frankly most of the very successful real estate investors here have made so much money through appreciation that they don't really care/can afford to have little to no cash flow every month. So yes, I've seen people operate in this manner, but there is no denying that it is extremely risky. 

Now of course I don't know you're whole situation, but it sounds like you might be a good candidate for out of state investing or looking further from NYC if you are looking for monthly cash flow. There's plenty of markets to research that won't have as high of taxes, and will have lower purchase prices. This comes with it's own set of risks of course, so make sure to do some research! 

Best of luck! 

most of the money* apologies for the typo 

@Christian Reyes Be careful. Mortgage interest is the only deductible portion, not the principal. You also get to depreciate the property.

 However, you seem to be ok with "operating at a loss" because you are spending most of my money on mortgage and taxes. Sure, you'll be "better off" by deducting these high expenses but at the end of the day it will still be costing you money every month! Are you taking a different approach where the monthly cash flow is irrelevant (trying to speculate for appreciation etc)? 

@Josh C., sure thing.  The main question to ask is: What is the debt being used for? 

Let's say you have a primary residence and take a 100k heloc on it to buy a rental property. You wouldn't take the interest on schedule a (for your primary), you would take the interest on schedule e for the new rental property. What if you refinanced a rental and then used the proceeds to pay off your primary mortgage?That wouldn't be a rental deduction.

What's important where the debt proceeds are actually going. I can't go refinance a rental, buy a fancy sports car and call it rental interest.

Does that make more sense? 

Frank Wells to answer your other questions, it's treated just like any other rental. You file a schedule e, deduct depreciation, etc.