All Forum Posts by: Billy Abildgaard

Hello all, 

I'm trying to figure out the differences between commercial investing (business property) and residential as far as tax implications, write offs, etc.  To be clear, when I say commercial I mean leasing to a business, not commercial because of the number of units.  I understand residential tax write offs, schedule E, depreciation, etc.  For example, not sure if depreciation is different if one was to own a commercial property that a business leased, and if a schedule E would still be used.  Trying to determine what has better tax advantages while comparing commercial vs residential for a next investment. 

Appreciate any insight or clarification the community can provide. 

Hi Latoya, there are a few things to keep in mind when looking to work with a Brokerage. First, by law you need to work under a broker so you aren't able to be self employed with just a Real Estate Salesperson license. back to your question, here are things I would ask 1. what are the commission splits? Are they the same for buyers / sellers / rental agent? 2. Do you have a desk fee? (many bigger brokerages charge a "desk fee" to have you work for them. that means you can be paying $100 a month to a Brokerage with no guarantee of money to yourself) 3. How will you help me ramp up my knowledge in various real estate disciplines? examples used are pre-recorded videos, hands on pairing with an agent to shadow them, or reading documents. Varies greatly. 4. What is the commission if I procure a new listing for this brokerage? 5. associated with number 4, if I rent a place that someone else added to the listing, what commission do I owe them? 6. As I improve, when will my commission split be re-evaluated? Are there gradual increases or large steps? 7. Who pays for advertising costs? (cards, for sale signs, fliers, etc.) 8. why should you work for them compared to the other brokerages available? Hope this helps!

something else to keep in mind is your LTV when deciding to put it in your name or under your LLC. if you are highly leveraged then a bank may balk at the idea of giving you another loan

Getting started with renting out a room in my home.  Anyone know of any savvy real estate accountants in Massachusetts they would recommend?  I heard if you write off deduction from the rental room on a schedule E then you have to deduct that depreciation amount when selling the house as you need to exclude that room from the personal exemption on capital gains. Looking for someone to help me navigate these nuances to maximize tax deductions while still maintaining a longer term view.  Any help is appreciated.