Posted by Regan on July 22, 2002 at 21:18:24:
Can someone give me details on cost of Ed’s workshop?
I attempted to email him with the form on his site, but there is an error in the page.
Thanks.
Tax deductions on real estate investments… - Posted by Frank
Posted by Frank on June 25, 2002 at 15:25:42:
Does anyone know/have information on what is tax deductible on real estate investment property (example/ interest on mortage, maintenance,etc…)? This information is extremely important for me to know. Thanks!
Re: Tax deductions on real estate investments… - Posted by James Buster
Posted by James Buster on July 15, 2002 at 21:13:41:
Also keep in mind that you can componentize your depreciation deductions. Rather than depreciating everything over 30.5 years, you can do things like
roof 10 years
A/C 5 years
carpet 5 years
and so on (numbers from hat). Structure is still 30.5 years. You get significantly accelerated depreciation, which is cash in your pocket. I believe you can also accelerate depreciation over remaining useful life rather than the full term of years. I know this works for commercial properties, and should work for residential. As always, I am not a lawyer or CPA, check with your tax advisor.
Re: Tax deductions on real estate investments… - Posted by steve wolfe
Posted by steve wolfe on June 25, 2002 at 18:17:41:
Your tax deductions are, traditionally, real estate taxes; insurance; all repairs and maintenance where an existing item is not being replaced, (like a stove repair as opposed to replacement); all interest paid on mortgages to lenders; and (if you keep the credit card segregated to only real estate activities) credit card interest! If your real estate activities neccessitate the use of a cell phone, fax machine, computer, printer, internet access, postage, etc. Also, that portion of vehicular expense that was expended in real estate activities and the same portion of auto insurance; utilities paid during rehab of a property, or furnishing light or electric to common areas if you own a multi-family,
or any utilities you have agreed to pay for in a rental unit; Want more? Ok, suppose you decided that you may like to own property where you vacation every year: Arrange to meet a realtor the next time you’re down there and let him show you a few properties he thinks may fit your portfolio. THEN deduct your travel expenses, meals, lodgings, etc., simply by getting receipts for everything and keeping an accurate journal!! However, you’re on your own for the Disneyland tickets!!
How about writing off a NEW Vehicle?
Currently on the tax code is a little known provision that will allow you to deduct up to $20,000 on the purchase of a SUV or truck (provided it weighs at least 6000lbs) in the year of purchase. NEW OR USED!!
This should be enough to keep you busy for a little while, anyway. And send me a scan of your new car when
you get it!!
Regards,
Steve
Re: Tax deductions on real estate investments… - Posted by Gary
Posted by Gary on November 16, 2004 at 12:48:39:
Does anyone flip houses and report everything on Schedule C as a business? One tax adviser told me I could do this or report on Schedule D as a capital gain. Since I pay out my SS and FICA at my regular job seems like Sch. C is the way to go. I think on Sch. C I can deduct everything involved in the business like taxes, insurance, interest, closing costs, repairs, advertising, sales expense to a realtor whereas on Sch. D I think you are limited to improvements that are relative to the basis of the asset. Anyone with experience here that can tell me how you did it?
Re: Tax deductions on real estate investments… - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on June 26, 2002 at 24:17:39:
Steven,
What is this tax code provision you speak of about a $20k deduction for a truck? Can you give a little more details such as is it a one time write off in the year it is purchased? I am trying to picture here what you are saying. Can you purchase a $20k truck, and also deduct $20k in deductions for that truck in the same year? After this, do you lose the mileage or depreciation deductions since you get it all in one shot?
You’re the man Steve! - Posted by Frank
Posted by Frank on June 25, 2002 at 18:44:14:
You definitely addressed my question Steve. Thanks a million!
Re: Tax deductions on real estate investments… - Posted by Kent C
Posted by Kent C on July 22, 2002 at 04:08:52:
I think he is talking about “expensing” aka section 179. And I believe it is not allowed with passive realty. So if you flip properties you could write off the max for “expensing” ($24k 2002, $25k 2003). But if you rent, forget it. It would have to be depreciated or used as the mileage method.
Kent C