Condo – sell or rent out?

[(former)FormerSanDiegan]

Bloat – regarding tax benefit from write-off as a primary residence owner (mortgage interest and taxes) versus rental income loss ( up to 25K)….are you saying that I can achieve a comparable or even greater tax deduction via rental loss as long as it does not exceed the 25K?

You can write off more things on a rental. These include: depreciation, insurance, maintenance, and anything related to managing, marketing the rental, etc. Depreciation alone would likely be 10K per year in your case.

You deduct these against the rental income first. Any additional losses (up to 25K, if you make less than 100K) can be deducted against regular income.

This 25K limit decreases by $1 per each dollar you make over 100K. It goes to zero at 150K.

Any losses you cannot deduct are carried forward for the next tax year as a carryover loss. You can use these in the future or take all your carryover losses when yo dispose of the property.

[djrobsd]

My tenant asked me about rent to own. When I told him my mortgage reset to $3100 he ran for the exits… LOL

[djrobsd]

My tenant asked me about rent to own. When I told him my mortgage reset to $3100 he ran for the exits… LOL

[djrobsd]

My tenant asked me about rent to own. When I told him my mortgage reset to $3100 he ran for the exits… LOL

[Raybyrnes]

I would think that with a rental you could also loosely qualify as a “real estate investment professional” which would provide you with the ability of writing off additional expenses for your transportation, subscriptions to newspapers and journals, paid for websites etc.

[Raybyrnes]

I would think that with a rental you could also loosely qualify as a “real estate investment professional” which would provide you with the ability of writing off additional expenses for your transportation, subscriptions to newspapers and journals, paid for websites etc.

[Raybyrnes]

I would think that with a rental you could also loosely qualify as a “real estate investment professional” which would provide you with the ability of writing off additional expenses for your transportation, subscriptions to newspapers and journals, paid for websites etc.

[djrobsd]

Raybarnes,

Can programs like ACORN be used to refinance from an ARM?

[djrobsd]

Raybarnes,

Can programs like ACORN be used to refinance from an ARM?

[djrobsd]

Raybarnes,

Can programs like ACORN be used to refinance from an ARM?

[Raybyrnes]

Unfortunately this is where my knowledgee runs out. You would have to call a lender and find out what is available through these programs.

You may also want to look into the SBA program. If their was any potentail damage to you home you could try to loosely quaiify for SBA money 2.97 for a 30 year fixed up to 200K or if you have a small business 4% fixed up to 1.5 million .

During the World Trade Center many businesses were looseely extended these types of loans. You may want to speak with a banker to see how loose they would be for you.
Sorry I don’t have more for you.

[Raybyrnes]

Unfortunately this is where my knowledgee runs out. You would have to call a lender and find out what is available through these programs.

You may also want to look into the SBA program. If their was any potentail damage to you home you could try to loosely quaiify for SBA money 2.97 for a 30 year fixed up to 200K or if you have a small business 4% fixed up to 1.5 million .

During the World Trade Center many businesses were looseely extended these types of loans. You may want to speak with a banker to see how loose they would be for you.
Sorry I don’t have more for you.

[Raybyrnes]

Unfortunately this is where my knowledgee runs out. You would have to call a lender and find out what is available through these programs.

You may also want to look into the SBA program. If their was any potentail damage to you home you could try to loosely quaiify for SBA money 2.97 for a 30 year fixed up to 200K or if you have a small business 4% fixed up to 1.5 million .

During the World Trade Center many businesses were looseely extended these types of loans. You may want to speak with a banker to see how loose they would be for you.
Sorry I don’t have more for you.

[(former)FormerSanDiegan]

Raybyrnes –

I am not a CPA, but have dealt with tax issues on rental property for almost a decade. I think you are mixing two concepts here.
On an investment property (which the IRS considers a passive activity) you can deduct travel expenses, cleaning and maintenance, utilities, insurance, taxes interest, points, and other items related to the management, care, maintenance, and financing of the rental property. Regardles of whether you are a real estate professional.

The “benefit” if you are a real estate professional is that you can deduct your losses, independent of the passive loss limit of 25K, which declines to zero if you make over 150K.

The IRS definition of being a real estate professioinal is more strict than “with a rental you could also loosely qualify as a real estate investment professional”. The IRS requires defines it as such :

Real estate professional. You qualified as a real estate professional for the tax year if you met both of the following requirements.

1. More than half of the personal you performed in all trades or businesses
during the tax year were performed in real
property trades or businesses in which you
materially participated.

2. You performed more than 750 hours of
services during the tax year in real property
trades or businesses in which you materially participated.

For prospective landlords, whether by choice or necessity, I recommend the following light reading:

http://www.irs.gov/pub/irs-pdf/p527.pdf

[(former)FormerSanDiegan]

Raybyrnes –

I am not a CPA, but have dealt with tax issues on rental property for almost a decade. I think you are mixing two concepts here.
On an investment property (which the IRS considers a passive activity) you can deduct travel expenses, cleaning and maintenance, utilities, insurance, taxes interest, points, and other items related to the management, care, maintenance, and financing of the rental property. Regardles of whether you are a real estate professional.

The “benefit” if you are a real estate professional is that you can deduct your losses, independent of the passive loss limit of 25K, which declines to zero if you make over 150K.

The IRS definition of being a real estate professioinal is more strict than “with a rental you could also loosely qualify as a real estate investment professional”. The IRS requires defines it as such :

Real estate professional. You qualified as a real estate professional for the tax year if you met both of the following requirements.

1. More than half of the personal you performed in all trades or businesses
during the tax year were performed in real
property trades or businesses in which you
materially participated.

2. You performed more than 750 hours of
services during the tax year in real property
trades or businesses in which you materially participated.

For prospective landlords, whether by choice or necessity, I recommend the following light reading:

http://www.irs.gov/pub/irs-pdf/p527.pdf

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