All Forum Posts by: Victor N.

You could also buy a portable dishwasher that attaches to the sink faucet.

repairs to rental properties reduce AGI too

All rental operating expenses including utilities and lawn care reduce your AGO assuming your AGI is less than $100,000

Check your state laws. In Kansas you do not need a real estate license to manage residential property. @James Wise

@Rawn Wilson your CPA should be aware of Form 3115 accounting method changes and the 481a adjustment. If not, you should change tax professionals. I agree with the points made by @Natalie Kolodij

I would either cut him loose and consider the $1500 lost or maybe have him put together a materials list for one porch. You buy the materials on your own or go with him (probably work out better). Then have him do 1 porch and if it is acceptable workmanship, take part of the $1500 as a credit against his labor bill. Then terminate or rinse and repeat until all the porches are done.

I strongly recommend that you consult an experienced qualified tax professional. You can probably still do an accounting method change to deduct the missed depreciation. I can't tell if your numbers account for nondepreciable land. Your accounting method change might also include a partial asset disposition for that roof replacement. If not now, it certainly could have in 2014. The depreciation recapture is taxed at the lesser of your ordinary income tax rates or 25%, not a straight 25%. You have already cost yourself unnecessary income tax that far exceeds the fees charged by a competent professional by doing it yourself. On top of that, the tax laws changed while you rented it and changed again for this year. You also didn't mention the possibility of a 1031 exchange to defer much of the taxes on the sale. The good news is a tax professional can help you mitigate much of the damage and easily pay for themselves.

There is no redemption period for property tax sales in Kansas. However, there is a one year period of time after the judgment is entered in which a party in interest could file a motion to set aside the judgment and sale. Usually, the grounds would be lack of valid service of process, lack of notice of the tax foreclosure. Most title companies won't insure title unless the year has passed. Therefore, this is a cash purchase at auction. You get a deed and possession a few weeks after the auction but I would hold off on substantial improvements for a year. I am not a practicing lawyer and this is not legal advice.

I would want to know if the seller already started the legal eviction process, ie filed suit, and the expected timeframes before making a decision. Also, consider your costs like losing a favorable interest rate in a rising rate environment and how good a deal is it at the current price. Of course, do a walk through to assess condition before closing.

A policy I learned from my father is never say no to tenant requests, rather say how much. For example, say I would be happy to provide a new mattress and the cost will be $X in additional rent. The addition would be enough to pay for the improvement in a year. If the tenant wants it that much, both parties win. If not, there is no power struggle and the tenant made the decision.