You can’t bonus depreciate a roof improvement even if you’re an active Realestate investor ! It should be depreciated over the life of the roof. bonus depreciation only applies to assets with a useful life of 20 years or less, such as appliances. Remember that the IRS classifies some additions and improvements as assets with the same recovery period as the property itself. One of those improvements or additions is a new roof. Due to this, a new roof expense on a rental property does not qualify for bonus depreciation. A CPA here
Hi, but can we write it off, though? Pardon my ignorance. We have an STR we just put in service over a month ago. The plan is to do a cost seg on it. However, I heard that cost seg should be done first and then a roof replacement can be done after instead. We still have time before the year ends for the roof be replaced but not sure if that makes sense.
Cost seg on a STR? Juice likely isn’t worth the squeeze I’ve never seen anyone bother. How much short lived assets are inside the home? Cost seg is typically a play for a large commercial property.
If i convert my primary residence to a rental, can i depreciate the current market value minus the land, or do i depreciate the original purchase price minus the land value?
Purchased an RV for $5k (worth $35k+). My only costs are 6 months of RV Park rent, electricity and any needed repairs. Other 6 months I don’t have to pay RV Park rent just electricity for it sitting empty. Rents out for $2k/mo but can only rent 6 months max annually during peak season. RV is in RV Park so I do not own the land, just the improvements on the land. MY QUESTIONS: 1) Is this investment worth creating an LLC? 2) Is it too soon (not a big money maker) to hire you for tax advise or should I wait ‘til I have at least a 2nd rental property before worthwhile?
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19min hes wrong about the note carry. When you jave a note (mortgage) on the property the sale and taxable event has happened. Then you pay taxes on the profit/interest for the the of the loan. No one woth any experience would agree to a installment loan, which is what a "owner carry" without the taxable event would be. The taxable event qould be at the end of the term for more taxes than a sale and mortgage.
You call out the installment loan instead of the owner carry you started with. Two different things but the installment loan doesn't keep up with inflation and the opportunity cost loss.
Hello, will you touch on rentals in a trust? My mom’s 4 unit apartment is in an irrevocable trust for my sister and I. Any advice about selling it prior to my Moms passing ?
If it’s in an irrevocable trust it’s not a grantor trust, so it’s already outside her estate. It won’t get a step up in basis to FMV upon her death, so waiting to sell until after she passes doesn’t affect anything.
If you sell it and hold the note it’s an installment sale (unless you opt out of installment sale treatment). You’ll recognize part gain and part interest each year until the buyer pays it off.
Real estate Pro is NOT as valuable as this speaker alludes. #1 you don't loose that much or any on a good performing rental. #2 Some advanced tax attorneys feel that being a REP in an audit gets you tougher treatment. I relinquished my REP status.
what normal person owns a rental? with what money can anyone afford this unless they have a cushy government job that pays them blood money. can you give tax planning advice for the 99% instead of this?
I hate to say it but there is not much tax advice for normal people all normal people have working for them are retirement accounts. It sounds like you don't make much money, so you probably need all your paycheck and cannot put money into a retirement account to save money for retirement and tax. If you can put money into a retirement account, Mark has plenty of videos speaking to this.
@@sparksmcgee6641 "if you cant make it in a society with a corrupt government, unequal laws, anti-men hiring practices, and inflation at 20%+ you are making excuses" tell me you are a boomer without telling me you are a boomer lol.
Would a self-rental be on operations or holdings side?
Thank you! So beneficial!
It works if you rewind to the beginning, you can watch it all over again.
Great video! Some key points were highlighted that I hadn't heard anyone else discuss. Thank you!
I would love to watch the webinar.
You can’t bonus depreciate a roof improvement even if you’re an active Realestate investor ! It should be depreciated over the life of the roof. bonus depreciation only applies to assets with a useful life of 20 years or less, such as appliances. Remember that the IRS classifies some additions and improvements as assets with the same recovery period as the property itself. One of those improvements or additions is a new roof. Due to this, a new roof expense on a rental property does not qualify for bonus depreciation. A CPA here
Hi, but can we write it off, though? Pardon my ignorance. We have an STR we just put in service over a month ago. The plan is to do a cost seg on it. However, I heard that cost seg should be done first and then a roof replacement can be done after instead. We still have time before the year ends for the roof be replaced but not sure if that makes sense.
@@mlj777 it can be only depreciated over its life, feel free to contact our office for a consultation
Cost seg on a STR? Juice likely isn’t worth the squeeze I’ve never seen anyone bother. How much short lived assets are inside the home? Cost seg is typically a play for a large commercial property.
If i convert my primary residence to a rental, can i depreciate the current market value minus the land, or do i depreciate the original purchase price minus the land value?
How do I ask a question?
Purchased an RV for $5k (worth $35k+).
My only costs are 6 months of RV Park rent, electricity and any needed repairs. Other 6 months I don’t have to pay RV Park rent just electricity for it sitting empty.
Rents out for $2k/mo but can only rent 6 months max annually during peak season.
RV is in RV Park so I do not own the land, just the improvements on the land.
MY QUESTIONS:
1) Is this investment worth creating an LLC?
2) Is it too soon (not a big money maker) to hire you for tax advise or should I wait ‘til I have at least a 2nd rental property before worthwhile?
“A llittle Forest Gump action”…..this guy
How do you get on the mailing list for the live sessions?🤙
To get weekly notifications of upcoming content and lives, please join our newsletter at markjkohler.com/contact-us/ I also go live weekly on my TH-cam, so please subscribe to get notified. Thanks!
19min hes wrong about the note carry.
When you jave a note (mortgage) on the property the sale and taxable event has happened. Then you pay taxes on the profit/interest for the the of the loan.
No one woth any experience would agree to a installment loan, which is what a "owner carry" without the taxable event would be. The taxable event qould be at the end of the term for more taxes than a sale and mortgage.
You call out the installment loan instead of the owner carry you started with. Two different things but the installment loan doesn't keep up with inflation and the opportunity cost loss.
So is that it? Mark, are you coming back after the freeing or is that it?
i have a C corp. The C corp has one long-term rental property. I want to buy it and move into my LLC. How can I do that?
Hello, will you touch on rentals in a trust? My mom’s 4 unit apartment is in an irrevocable trust for my sister and I. Any advice about selling it prior to my Moms passing ?
If it’s in an irrevocable trust it’s not a grantor trust, so it’s already outside her estate. It won’t get a step up in basis to FMV upon her death, so waiting to sell until after she passes doesn’t affect anything.
If I sell a commercial property and take back the paper, am I taxed on the interest received each moth or the total capital gains on the sale?
If you sell it and hold the note it’s an installment sale (unless you opt out of installment sale treatment). You’ll recognize part gain and part interest each year until the buyer pays it off.
Did you say meth lab? 😅😂🎉
Real estate Pro is NOT as valuable as this speaker alludes. #1 you don't loose that much or any on a good performing rental. #2 Some advanced tax attorneys feel that being a REP in an audit gets you tougher treatment. I relinquished my REP status.
what normal person owns a rental? with what money can anyone afford this unless they have a cushy government job that pays them blood money.
can you give tax planning advice for the 99% instead of this?
I hate to say it but there is not much tax advice for normal people all normal people have working for them are retirement accounts. It sounds like you don't make much money, so you probably need all your paycheck and cannot put money into a retirement account to save money for retirement and tax. If you can put money into a retirement account, Mark has plenty of videos speaking to this.
You if you plan and work for it.
The tax code is the same for everyone. If you can't use this then it's just an excuse you're using to not do it.
@@sparksmcgee6641 "if you cant make it in a society with a corrupt government, unequal laws, anti-men hiring practices, and inflation at 20%+ you are making excuses"
tell me you are a boomer without telling me you are a boomer lol.
Wicked millennial pause on that one