Posted by BrokerScott (Mich0 on March 07, 2003 at 13:51:35:
I too have been occasionally guilty of reading something into posts that wasn’t the poster’s intent. Apology accepted. Scott
Tax time need some help - Posted by Jeremy
Posted by Jeremy on March 07, 2003 at 07:40:16:
My dilema is the oppposite of most. I am in need of showing more income to the banks in order to keep qualifing for loans.(Rent and hold investor) I wanted to not depreciate my properties since that takes a fat chunk of my income away, but she tells me I can not so this. Do I need a new accountant and any advice from people in similar situations would be helpful.
My credit is stellar but my debt/income is overwhelming to most banks. Might have to stick to the no docs loans.
you must depreciate… - Posted by David Krulac
Posted by David Krulac on March 07, 2003 at 17:48:36:
BUT the IRS would not object if you took LONGER depreciation schedules. Residential is IRS at 27.5 years, nothing to stop you from taking 40, 50, 75 or 100 years, BUT you can’t go back and shorten later on.
but don’t shot yourself in the foot.
Re: Tax time need some help - Posted by Jeff
Posted by Jeff on March 07, 2003 at 10:26:26:
Keep on depreciating. It is God’s gift to landlords. Most mortgage companies add your deprectiation back in when you apply for a loan.
Re: Tax time need some help - Posted by BrokerScott (Mich)
Posted by BrokerScott (Mich) on March 07, 2003 at 10:18:01:
A few thought- Take a second job, decrease deductions like repairs, but don’t give up your depreciation, work overtime, become a consultant- “Gee I don’t know where that extra zero came from” cough-cough, seriously the 25% vacancy allowance that banks use is just plain silly. Since they won’t ever take your actual numbers, and running a 25%+ margin is pretty hard, you might also find a way to make it look like your subsequent purchases have more down payment. (Put it in and then borrow back from he seller on a note after close.) Get a second opionion on your taxes, I tell my accountant what I want to do and leave it up to them to figure out HOW to get it done. Best, Scott
Re: Tax time need some help - Posted by tyler
Posted by tyler on March 07, 2003 at 08:08:07:
Keep depreciating, you truelly don’t want to give up this right. Consider setting up a seperate entity that pays you a salary (thus creates W-2). This company could do property mgmt, contractor, flipping properties, etc, etc. I’m sure others will have another angle.
Re: Tax time need some help - Posted by Peter_MD
Posted by Peter_MD on March 07, 2003 at 11:42:50:
Wow…this is the worst piece of bad advice I’ve seen on this board in quite sometime.
Warning…especially the highly escited and impressionable beginners, be very careful doing anything with lending and borrowing money and falsely stating you will do something and then do something different.
…as far as your accountant, I for one can’t get bought, however, there are rumors that some can.
If I were your accountant…no never mind, I won’t go there…mainly because I would be able to time our association with a stopwatch.
Beginners, if you do it after listening or reading bad advice, be prepared to suffer the consequences for your actions. You, and only you, are at fault.
A good rule to follow. If in doubt, check it out (use a professional that has been referred by satisfied customers)…works every time.
For five years as a forensic accountant for a federal agency, the brokers were the hardest to catch because they signed practically nothing (however) they were the easiest to catch in a sting operation. …and when we told the applicants that they were not the targets, but the broker, settlement attorney, real estate agents, etc., and that they would not be prosecuted for their complete cooperation, these people sang like a canary…I found it difficult to slow them down so I could take COPIOUS notes.
Reminds me…some of them might just be getting out of the pen right about now…
Again, your mileage may vary, just the way I see things in my stress free life … during the peak of tax season.
People who become actuaries are… - Posted by BrokerScott (Mich0
Posted by BrokerScott (Mich0 on March 07, 2003 at 12:47:30:
very good with numbers but don’t have the personallity or apparently the sense of humor to be accountants. #1. The statement about the extra zero was a joke as evidenced by the ‘cough-cough’. #2. Borrowing back a down payment is not illegal, since the property isn’t further encumbered, the bank doesn’t have a gripe. #3 I fail to understand how telling my accountant what I want done, and have them figure out HOW to do it even merits a comment. You are, well not YOU obviously, a useful contractor like any other, and if the work is unsatifactory, you get no further business. In any case your comments were long on huff and short on substance. Good day!
Sorry…I stand corrected, my mistake (NT) - Posted by Peter_MD
Posted by Peter_MD on March 07, 2003 at 13:15:48:
.