hey all…i wanted to know when you should convert your property to rental property. if you own a single family home and it’s being rented out…should it be converted? or is this usually for mult-families?
thanks!
hey all…i wanted to know when you should convert your property to rental property. if you own a single family home and it’s being rented out…should it be converted? or is this usually for mult-families?
thanks!
What do you mean “converted”? If you are already renting it out, it is rental property.
Gary’s right…if the property is being rented, it’s income property. And, even if you don’t depreciate it, you have to reclaim the depreciation you should have taken when you sell…
Why would you rent property and not take your tax advantagfes?
Keith
ok i guess i was misinformed…or misread somewhere. i thought that you had to do some filings or something which registers it as “rental property”. okay, big mistake there
as far as taking the tax advantages of it…(not that i plan on evading taxes) but will they outweigh the total taxed income?
Only you can tell that…we don’t knopw what your numbers are…there are a lot of things that you can deduct!
Keith
Get an excellent CPA that knows the Real Estate “game” & you may be surprised of the deductions you have right in front of you
anyone have any recommendations for one in Jersey? preferably my county (Morris County).
or maybe a site which is lists only reputable people?
Ryan,
I don’t know if you happened to see my reply here last night so I will try again.
I work as a tax preparer for a rather large tax service, and have had several clients with rental houses. There are numerous reasons to claim a rental house on your tax return.
Rental income is TAXABLE income.
MANY EXPENSES are tax deductable. Repairs, maintenance, utilities, and advertising are just a few.
DEPRECIATION on a residential house is taken on a 27.5 year schedule. Various other items you use in your business are also deductable and also depreciate. You or your tax man needs to know which is going to be the best treatment in your particular tax situation.
Doing real estate taxes isn’t all that hard to do, you just have to KNOW the RIGHT INFORMATION!! I have been doing my own business taxes and personal taxes for about 8 years. This is the first year I’ve been behind the desk in a business situation doing taxes. I ABSOLUTELY LOVE IT !!! It’s great when a client comes in and tells me they are going to have to pay about 2,000 to Uncle Sam. OK, Let me do my job and we’ll see what happens. More often than not, I’ve turned that computer monitor to show them and they have a refund for a thousand dollars !!! That’s a great feeling!!!
I’ve checked our company website and there are some offices in Morris County. I grew up there many moons ago and know the area. If you want some more info just give me an email and I will gladly help you.
BTW, if you have seen the front page of Yahoo, the big biz story thats there IS NOT THE COMPANY I WORK WITH !!! Just wanted it to be known that I don’t work for them, but we will take competitors coupons. I LOVE Block and Hewitt coupons !!!
Give me a shout and I’ll reply ASAP,
Kevin Carr
PS, Our owner is a CPA and has had a tax service for over 20 years, a good friend of mine worked for IRS as an investigator, and unlike RRRR13 says, I take taxes SERIOUSLY, but I’m having a BLAST doing it !!!