So only someone making under 150k would be able to take active losses agaibst s rental if their not a real estate pro and/or isnt using their properrty as a short term rental?
Rental property deductions in Ohio. 1. Below fair rental value. Deduction. Yes 2. 4 months with no rental Income 2023. Deduction. Yes 3. Repairs / Supplies to Sell Unoccupied Property 2024. Deduction. Yes 4. New Roof February 2023? *** unsure if it's accurate deduction status *** 5. Should we get most of full 9600 of roof replacement vs. Depreciation? As to me it makes no sense that we'll take an almost 9600 loss? I think as a novice self tax preparer prior to this selling of property venture... 90% deduction for roof at best? Yes or No? 6. The capital gains should balance out. Approximately 30k minimum after Payoff/ expenses. etc... I think I've covered most inquiries here. 7. Utilities paid Unoccupied. Deduction. Yes Appreciate your knowledge and sharing of your time. Please correct by my numbers if I'm a bit inaccurate of my explanations. Thanks, Bill 👍 Have a safe and blessed New Years.
Hi , I am sorry, but I am not able to give specific tax advice over RU-vid as we are not engaged to work together. You would need to become a client. If you would like to book a consultation my hourly rate is currently $160 per hour. You can find how to contact me through my accounting practice at www.mikekellycpa.com. Thank you Mike
I'm repairing my roof on a rental property. It's going to cost $20,000 plus to replace the waterproof membrane and using existing tiles. I also have solar panels, so the cost is even more to remove the panels and reinstall it. The roof repair is guaranteed for 10 years. It sounds like I need to depreciate over 10 years. I would like to take the full cost of repairs in one year. What are your thoughts?
New subscriber here. Good content. Very informative. How about if one decides to sell the rental property? Do I have to add the depreciation back and pay capital gains? If so what part of the depreciation? Is it just the building and improvements? Love to have a video about this.
Hi, Thanks for the sub! Ya that is a bit more complex - Probably need a CPA for that one. In general, yes you may have to capture a portion of the depreciation taken as section 1250 gain in addition to normal capital gain taxes.
to clarify- if I have one rental, and rent it out 3-4 weeks a year, and I'm a passive investor, then the mortgage interest and insurance, property tax, deprectiation on this rental property is NOT tax deductible on my regular income and capital gains from stock investments. Correct?
Hi Mike, thanks for educating the masses. this is something off the topic. But what about taxes on money gifted from parents if it is under $17800. The IRS website does say we don't need to report and pay tax. Also, can we break down the gift money per year in order to keep it under the stated threshold Thanks
My pleasure! And the answer is yes. If you can spread out a gift over multiple years that is the best way to avoid a gift tax filing. For 99.999% of people there will never be a tax on a gift, but there is a reporting requirement if the gift is above the threshold amount.
@@MoneyandLifeTV appreciate your prompt response..Also, I would really appreciate if you could make an informative video on CPAs search like Dos and don't s of hiring a one... Like any other profession, there are people out there who are just waiting to rip you off🥲
I have rented out a house that i lived in and owned for 38 years prior to turning into a rental. This is longer than the 27.5 year standard term of depreciation. How could I approach developing a basis for depreciation? Could factors such as past repairs and renovations be pertinent?
Virtually unlimited. I have never seen irs challenge it. However if losses were excessive and it took a persons tax liability to 0 then they likely would challenge it if was happening for multiple years in a row. I have seen some businesses and farms get challenged for too many years of consecutive losses.
Am I active if I manage my STR listing? I clean it after it’s been rented. I do Any repairs needed. Property is 2 hours away so I travel to it to do these things. But I also have a remote job. Would I be considered active?
Yes. When you sell a rental property, any suspended passive losses you have in other properties can be used to offset the capital gains in that property.
