[ron@jayron]

Second home, not rental until you receive income

[Mohawksin]

Originally Posted by LiverpoolWalrus

Thanks for all the responses. I should have said that yes of course I’ll be getting professional advice in a few weeks. I was asking for this information because it’ll make it easier for me to tally only the numbers that are relevant. There’s no sense in adding up costs in my records that aren’t deductible.

But I appreciate the consistency in the let’s say “tone” of TOTV responses!

You should keep records of every expense that adds to the basis so you can calculate the gain when you sell it.

[TOMTOFVIL]

Not a professional but this is what I did. Just like any business you can have start up costs (expenses) prior to income in the following year. See IRS rules on startup costs, because not everything is included. Not sure since you have a ratio of 3 months to 0 if costs will be just be carry over losses, useful when you sell. Don’t forget travel expenses to buy house. Also, when you moved in did you spend days furnishing, repairing, getting tv etc. installed., I.e. business days?

[Cranford61]

[QUOTE=LiverpoolWalrus;1909776]Thanks for all the responses. I should have said that yes of course I’ll be getting professional advice in a few weeks. I was asking for this information because it’ll make it easier for me to tally only the numbers that are relevant. There’s no sense in adding up costs in my records that aren’t deductible.

But I appreciate the consistency in the let’s say “tone” of TOTV responses!
Has anyone ever made money on real estate rentals? After subtracting all you can, and factoring all grief, anxiety and angst with no shows, repairs, damages, commissions AND lost gains in the stock market, it seems like a stupid investment for people not having been successful in their previous career.

[mrf6969]

Every expense you have put into this home if it is going to be a business/rental property you have to make a decision on. The decision is are you going to claim them as an expense for the year or are you going to set up a depreciation schedule? Going into this process is where you need professional help. You start doing this yourself and you can get red flags up quickly if your not careful. Every year you have to explain what you are doing and why. The IRS loves to scrutinize rental properties.
Another thing that many folks do not realize that have rentals here in TV is that you need to collect the hotel tax. Any longer term rental over 6 months and a day then you do not need to collect this tax.
We have had rental property in TV for a few years now. Do yourself a favor once you are truly set up as a rental home, get a CPA.

[mrf6969]

[QUOTE=Cranford61;1910007]

Originally Posted by LiverpoolWalrus

Thanks for all the responses. I should have said that yes of course I’ll be getting professional advice in a few weeks. I was asking for this information because it’ll make it easier for me to tally only the numbers that are relevant. There’s no sense in adding up costs in my records that aren’t deductible.

But I appreciate the consistency in the let’s say “tone” of TOTV responses!
Has anyone ever made money on real estate rentals? After subtracting all you can, and factoring all grief, anxiety and angst with no shows, repairs, damages, commissions AND lost gains in the stock market, it seems like a stupid investment for people not having been successful in their previous career.

6 years and making money every year. Our is a long term rental home. Very hard to go into this if you are running a mortgage. No mortgage on ours and we net net a good $900. a month.

[Diverdave]

[QUOTE=Cranford61;1910007]

Originally Posted by LiverpoolWalrus

Thanks for all the responses. I should have said that yes of course I’ll be getting professional advice in a few weeks. I was asking for this information because it’ll make it easier for me to tally only the numbers that are relevant. There’s no sense in adding up costs in my records that aren’t deductible.

But I appreciate the consistency in the let’s say “tone” of TOTV responses!
Has anyone ever made money on real estate rentals? After subtracting all you can, and factoring all grief, anxiety and angst with no shows, repairs, damages, commissions AND lost gains in the stock market, it seems like a stupid investment for people not having been successful in their previous career.

I might just be lucky but for November through April I collect about $20K, and in 3 years the house has appreciated $50K.

Have had my challenges with property management but on the whole I feel like it has been worth it. We are moving down full time in a few months so I got income, appreciation and paid down the loan before I take residency. Works for me.

[LiverpoolWalrus]

Originally Posted by Cranford61

Has anyone ever made money on real estate rentals...it seems like a stupid investment for people not having been successful in their previous career.

I’m taking cover!!!

[LiverpoolWalrus]

Let the record show that Liverpoolwalrus did NOT ask if anyone ever made money and that it seems like a stupid investment. Two quotes were merged together by two different posters unfortunately under Liverpoolwalrus’ name.

[manaboutown]

Has anyone ever made money on real estate rentals? After subtracting all you can, and factoring all grief, anxiety and angst with no shows, repairs, damages, commissions AND lost gains in the stock market, it seems like a stupid investment for people not having been successful in their previous career.

Yes, since I bought my first property in 1968, a four unit apartment building on Capitol Hill in DC for $28,000. Actually, I have been happily living on income from my rentals since I retired in 1994 at the age of 52.

Way back when I used Lasser's income tax guide and filed my own tax returns for a few years. I was meticulous about recording every expense as well as all income. My returns soon became lengthy and tedious prior to computerization so I started using accountants. Over the years I have had a few accountants quit on me. lol. When Turbotax first came out I played around with it but at that time it did not have all the features I needed. It probably does now but I have relied on CPAs since early on although I make sure to follow tax law changes. They have been worth every penny and more. I recommend a landlord find a good CPA who knows the ropes about rentals.

Over several years my father eventually acquired nine rental homes in the 1940s and 1950s while I was growing up. I was the slave who took care of the lawns and cleaned up and painted after moveouts. I learned a lot from that.

[Bay Kid]

I have a rental owned for over 20 years. The tenants paid for my rental. Now just clear profit every month. Same tenant. I promised not to raise the rent and they take very good care of the home. The value has really gone up also.