I just want your opinion.
do you recommand i buy software like quickbooks or quicken property
manager since
i will have a few houses this year and i will rent them out.
a few questions i have.
if i buy houses are primary resident and second home… then rent them
out…( they are in other state) are they still consider investments
and deduct losses?
can i deduct rental losses from Capital gains when i resell the property??
thanks
I personally like QuickBooks - better software for business, if a bit harder to use than Quicken. Still investments, assuming that you do not spend much time residing in them. Any losses incurred are deductible in the year incurred up to $25,000 per year if you make < $100,000. If you make over $100,000 losses are suspended until you sell, at which point they offset any gain. > $100k & < $150k in income means you ca deduct < $25k per year. If you are in RE fulltime, all losses are deductible in the year incurred.
John Hyre
if i buy houses are primary resident and second home... then rent them out...( they are in other state) are they still consider investments and deduct losses?
Denny,
Let’s clarify your question. If you say that you want to use owner-occupied loan programs to purchase a primary and second home, then you will have to certify that you intend to hold the property for your personal use and occupancy.
If your strategy is to actually acquire these properties for investment rental use but use owner-occupied financing, then you risk being charged with loan fraud. If the loans are federally insured, the maximum penalty is a $250K fine and up to two years in a federal facility.
On the other hand, if you are saying that you will use investor loan programs to finance the purchase of a first and second rental property in an out of state location, then disregard my caution.
i lived in the homes for 2 years, That is the reason they are called owner-occupied
OK, fine.
Saying “If I buy” suggests this is something you are planning to do. I hope you understand why I responded the way I did.