Thanks, Gem. I'm hoping this decision is a good one. I just hate to break the news to my tenant. She's the first really great tenant I've had (my 4th in less than 3 years!).
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- Thread starter Bookworm616
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Thanks, Gem. I'm hoping this decision is a good one. I just hate to break the news to my tenant. She's the first really great tenant I've had (my 4th in less than 3 years!).
Loki
Well-Known Member
Unfortunately, all I'm building at this point is debt. I bought the 2-unit house so I could actually afford to buy a house, the tenant income paying much of the mortgage. But the house has been such a money pit that it's not doing me any good.
Shoot, hate to hear that, any way to cut your losses and find another property? I am constantly shopping and cost comparing home warranties (right now I use Home Shield) to get the most coverage at the best prices. Make sure your accountant knows about being able to write off part of your mortgage as well if you have a home office where you manage your tenants. Lots of good tax advantages if you are creative (stay legal).
I was considering it but I'd have to foreclose or do a short sale. But because of the problems I've had and the debt it's caused, I can't afford a place of my own right now so I'm stuck. Apartment rentals are as expensive as my mortgage. It makes more sense to stay put and try to do what I can to do cosmetic upgrades.
I'm not sure if the accountant takes that deduction or not. Since I live in the house, not sure what applies. I trust him though. He's a good guy. I've known him since high school. I'm surprised that I get a refund. As long as I don't pay in, I'm good. Lol. And I insist on staying legal and I know that's his work ethic as well.
The Dark King
Well-Known Member
It sure does think of it as a home office deduction
Whatever percentage of the house that's used as income can be considered tax deductible when taking repairs into account. As long as you're reporting the extra rent as income, like Loki said stay legal my friend. An audit sucks balls.
Disclaimer:
Only licensed in the State of New York so make sure you speak to your local accountant as certain things may vary from to state to state.
FG
Well-Known Member
If you write off part of the mortgage because you have a home office, you will have to pay back a percentage when you sell the house. I work from home and did that math, I decided to not do a tax write off, it didn't seem worth it.
Right, I knew that. He also has me give him all expenses directly related to the apartment and then uses a percentage of utilities that are included in the rent to write off. I just didn't know about the home office deduction. I don't really do anything but accept her check and write her a receipt. I guess he could take a deduction for my desk. Lol!
4north1side2
Well-Known Member
Unfortunately, all I'm building at this point is debt. I bought the 2-unit house so I could actually afford to buy a house, the tenant income paying much of the mortgage. But the house has been such a money pit that it's not doing me any good.
I hate to read this, hope your fortunes with the house reverse soon.
FG
Well-Known Member
Don't know. That was my accountant told me so in decided against getting the deduction as I don't want to take a hit when I sell
http://m.youtube.com/watch?v=MKCyUe4syc4¶ms=OAFIAVgC&list=PLgJHaHEbnNKy6LKV7JD7wAFy4DC-PD6Jg
kyle from musical group beat down his women but it even takes just a wierd turn
kyle from musical group beat down his women but it even takes just a wierd turn
GFunk
Well-Known Member
So my sister, who I didn't know existed until about 5 years ago tracked down my brother who I haven't seen since I was a couple months old and I spoke to him on the phone today for the first time ever. So I'm pretty fuggin' excited about going to the family reunion on my dad's side this summer so all four of us can be together for the first time.
FG
Well-Known Member
That is freaking awesome!!!!!!! Keep us posted!
They've been living there since I bought the house...I bought it when his roommates graduated and moved out so he could move in with me until he was finished with school. Now, they'll stay in the part of the house we're living in and I will move downstairs.
It sounds like a good plan, Ches, and I hope it works out well for you. I also hope things go smoothly for you when you have to give your tenant the news. Good luck! :freehug:
What she said!!! I'm so excited & happy for you, BA!!! :smt026 :freehug:
Peach State Scholar
Well-Known Member
That's awesome news. It sounds like y'all are about to have a great time!
cool
didn't you just have a long lost aunt contact you as well? the family continues to grow...very cool news
didn't you just have a long lost aunt contact you as well? the family continues to grow...very cool news
I'm pretty sure that was Blackbrah.
Yes it does.
orejon4
Well-Known Member
Clearly I am not alone.