While it’s a rental, you can deduct expenses and depreciation, and report income on Schedule E.

That means even transferring the property to yourself can trigger a tax bill.No Basis from Debt:S-Corp shareholders don’t get basis credit for company debt, which limits depreciation and loss deductions on rental properties.

Under "common eligibility criteria" you'll see that in 2-4 unit buildings you can have one active short term rental and it must be your primary residence.To decide between renting out the upper unit as a long term rental or short term rental, I think you should compare the potential ROI/cash flow for both options.

Perfect for active investors upgrading properties or equipment.3. 20% QBI Deduction stays.

Each comes with tradeoffs.For example, an S-Corp may reduce self-employment tax, but you could lose out on certain deductions like the QBI deduction if you hit the phaseout limit .

From the start, choose the right structure such as an LLC to protect yourself legally and take advantage of pass-through taxation, which lets you deduct business losses and expenses directly on your personal return.

I’m an immigrant and not FHA-eligible, also just started my professional career so very little capital to start with, I’m currently exploring pre-approvals from a few lenders and learning about other financing options.I’m really interested in connecting with like-minded investors who have experience in multifamily investing in Okemos/East Lansing/Meridian Township.

What is the difference and why is it calculated (deducted) twice?

Keep in mind, minor fixes (like patching concrete or replacing a broken window) are deductible right away, while bigger upgrades (like finishing the basement) are considered improvements and depreciated.Potential deductions for personal use: If you use part of the basement for managing your rental (like an office) or storage for tools/supplies, you may be able to claim a home office or storage deduction.Advanced tax strategy – Cost Segregation & REPS: A cost segregation study can accelerate depreciation and make certain parts of your basement renovation immediately deductible rather than spread out over decades.

The $1,000 fee is reasonable — it’ll cost you far more if you make mistakes, miss deductions, or get audited later on.