Questions tagged [rental-property]

Questions around the use of property that is rented to others.

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0
votes
3answers
130 views

Would a commercially-owned personal rental property be considered commercial property?

If a property rental company, essentially a corporate landlord, is looking to acquire homes to rent out on mortgage, would the company take out a personal mortgage or a commercial mortgage, or is ...
3
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2answers
178 views

Trust issues with rental security deposit

I'm in a situation where I will need to rent an apartment without the ability to see it or meet the landlord/sublessor first. This creates a trust issue that I'm not sure how to address. Most ...
4
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1answer
136 views

Single vs. multi-family investment properties

I own a few rental properties in my town and am looking to purchase more. All of my current rentals are two- or three-family detached houses. The cost of multi-family houses locally has shot up ...
1
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1answer
83 views

How do new apartments affect rental rates in a city?

I live in a small city of about 25,000 people in the United States. Much of the existing housing stock in the urban core/downtown area is old (100 years or older) and in average condition. Recently, ...
2
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2answers
575 views

Should I pay off rental property mortgage before selling in order to save on interest?

My renters are moving out and I believe it will take at least 3 months to sell the house. The mortgage is $63k at 7% interest and the house will probably sell for $145k. The reason I'm thinking to ...
1
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1answer
101 views

2018 Federal Income Tax Deduction for Owner Occupied Rental Property

I live in a 3 bedroom condo in California and decided to rent out 2 of the bedrooms and live in one. The mortgage is $1M and interest is $4000 per month HOA is $600 per month Property tax is $1000 ...
52
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8answers
25k views

Why is rent going up in an apartment complex with multiple units sitting unrented?

I'm moving to a new city at the end of the month and am looking for an apartment. I found a property that I like, but the rent was a little more than I wanted to pay. So I decided I would take a risk ...
4
votes
2answers
375 views

Can I break a lease in response to a nonrenewal notice?

Just got notice that our house is being put up for sale and that we need to be out in 6 months. This is not an early termination, but a notice we will not be able to renew our lease. Since we'll ...
1
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1answer
48 views

Tax Free Exclusion (Capital Gain)

I have question regarding to capital gain tax to a sale of a townhouse in WA State. I just want to see if any of you can provide some advise. Thanks! home purchase in 2008 for 385k and was primary ...
1
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2answers
289 views

investing in mutual fund vs. rental property over 10 - 15 years

I have about $75K currently in a mutual fund. I've been considering adding an extension on to my house as a rental apartment, for which I think I could get $1200 - $1500/month currently. After 10 or ...
1
vote
1answer
81 views

What would be a financially intelligent rental cost to bear if you earn $90000CAD annually in Toronto?

Imagine if I earned $90000CAD annually (before Tax) in Toronto, what would be the most financially sensible maximum rental cost to bear? Would renting a house for $2500CAD monthly be somewhat over-...
14
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2answers
417 views

If a tenant makes a capital improvement to a leased property, is that income to the landlord?

If a tenant makes a capital improvement to a leased property, is that income to the landlord? For example, let's say I am renting a house to a family and at their own expense they build an addition ...
4
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1answer
334 views

Building passive income streams: Rentals vs. stocks vs.?

I've been fortunate for the past few years to have a very high-paying job. Over that time, I've put myself in the following financial situation: I own my personal home outright I own (also outright) ...
4
votes
1answer
184 views

USA: Renter had major medical setback and may become unable to make rent. What implications?

For 2017 taxes (USA) I formally converted my first home to a rental by declaring income, establishing cost-basis for depreciation, etc. The tenant's lease is July/2017-July/2018. Complicating things, ...
5
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0answers
124 views

Euro rental income earned in Spain but can it be paid in Sterling in UK

I am a UK national with a property in Spain. The tenants of this property currently pay the monthly rental in Euros to my Spanish bank account but have asked if they can change this arrangement and ...
4
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0answers
295 views

How does one calculate their AMT MAGI to determine their passive activity loss limitation?

The instructions for line 19 (passive activities) of Form 6251 (Alternative Minimum Tax) mention that you may need to do an AMT version of Form 8582 (Passive Activity Loss Limitations): Refigure ...
4
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1answer
50 views

Tax classification- non-real property rental income

A company rents equipment from me that I own. Does this income get taxed as passive income, in the same way that real property does? I've scoured the IRS tax code and have yet to find clarity. It ...
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0answers
66 views

If I convert a primary residence to a rental, are the cost of improvements potentially lost?

According to the IRS: When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market ...
26
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16answers
10k views

How to best invest 90,000 EUR with zero knowledge in investing?

I have 90,000 EUR and difficulty figuring out what to do with it. This money is in a savings account with an interest rate of only 0.05%. Here in Netherlands, I pay around 600 EUR each year on this ...
3
votes
1answer
197 views

Should my regular income tax unallowed prior year passive activity loss carry over to the AMT passive activity loss calculation?

This is a pretty esoteric question but worth a shot. I have a rental property. In 2015 I had an unallowed loss. In 2016 I exercised incentive stock options which resulted a higher alternative minimum ...
1
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0answers
50 views

Regarding leasing removal

I am living in shared accommodation. I am a student and not working yet so I don't have a SSN. But due to some reason I want to move out from apartment and my name is also on the lease, so I need all ...
4
votes
1answer
151 views

IRS ramifications of renting to a family member who also entitled to 1/3 of home (informally)

My mother quit claimed her mortgage-free home to me many years ago. It was understood that she would retain financial control the remainder of her life, although never formalized as a living trust. ...
3
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0answers
56 views

Can construction Soft Costs be carried forward on Canadian rental income?

I built a home and am renting it out for profit. While building, I incurred soft costs (mainly interest costs on money borrowed during construction, and insurance costs). In the years that I had these ...
2
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5answers
560 views

How important is the “1% rule” for income properties?

The 1% Rule - The monthly rent earned on an income property should meet or exceed 1% of the total buying price of the property. How accurate/important is this rule when it comes to personally ...
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2answers
110 views

Purchasing a rental property: Should I get a 401k loan or a home equity loan?

I needed cash right away to help pay for the downpayment. I took out a loan from my 401k which I'm currently contributing to per paycheck through my employer. I only needed about $10k, but I ended up ...
-2
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1answer
79 views

Should rental property purchased in January 2018 go on my 2018 tax return?

Should I include this rental property purchase in my 2018 tax return? The property was purchased in Jan. 2018. So should I be filing this property under my 2018 tax return (filed in 2019)? Basically, ...
7
votes
2answers
317 views

Estate agent wants to charge a large amount to change the contract

I live with two other people in a house share in the UK. One is moving out, and the estate agent who handles the contract wants to charge us £300 for the pleasure of changing a name. We think this is ...
2
votes
0answers
202 views

Can my landlord raise my rent for switching to a month-to-month lease?

When I first rented my apartment in Los Angeles 3 years ago, it was not rent-controlled. It had a clause saying my rent would increase by $600 per month if I went month-to-month, with a $600 fee to ...
4
votes
1answer
121 views

Deducting interest on a loan to repair a rental property

I own and rent out an apartment in a building that needs extensive repairs. The body corporate has broken the levy for the repairs into six payments. For the first three payments, last tax year, I ...
5
votes
3answers
2k views

Is this type of behavior a type of rental scam?

I have noticed in my area there are a ton of people advertising rooms for rent, where someone owns a large 3 or 4 bedroom home and is trying to rent the rooms out. These are usually advertised at $...
6
votes
2answers
471 views

Bought rental property in cash. What do I do now?

I recently bought a two-unit rental property in cash. I bought it because it is the house next to mine, it was in bad shape and the former landlord offered a pretty good price. The house was in such ...
2
votes
1answer
823 views

Before renting my house can I sell my house to myself to take advantage of the Capital Gains Exclusion?

This question applies to a property in Washington State in the the United States, although I'm curious how this might be handled on other regions. I'd like to adjust the cost basis of my house prior ...
3
votes
1answer
256 views

LLC or S Corp under new tax law

I and my wife have a small business that is registered in MA as an S-Corp, we have also a rental property. I am told that to protect ourselves it is better to register the rental property as LLC. I ...
2
votes
1answer
195 views

sell flat or rent it out as student

I started to study away from home, at the moment I live in my own flat and get everyday by car or train to the university. Its very time consuming as i need about 4 hours everyday only to get there ...
1
vote
3answers
203 views

Is it reasonable to purchase a home as a college student?

I'm a student the University of Louisville and I'm debating trying to buy a house in the area. Essentially, instead of paying rent, I would be paying a mortgage. I currently only have about $5k saved ...
4
votes
1answer
129 views

Transfer of profits from property letting to wife, UK?

We live and work in UK. Recently I've bought a flat, which is rented, that my wife is looking after (she left a day job to look after kids). property and BTL mortgage is in my sole name wife doesn't ...
2
votes
5answers
451 views

Family inheritance and property

I would like some advice on property allocation between siblings and parents. We all live in England. I have a sibling whom I love very much. We both get along with our parents who are divorced. We ...
1
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4answers
863 views

Borrow from 401k for down payment on rental property?

I'm saving up to buy a rental property, it will take a few years. I've been maxing out my 401k contributions at 18k per year plus employer match. I've got plenty in the fund to borrow from it to make ...
0
votes
1answer
263 views

I want to rent an apartment. The landlord wants me to sign at the court. Is this safe? Or smells like fraud?

I saw an apartment in a listing (I live in Taipei, Taiwan). The websites states that the contract has to be signed at the court. Is this safe? Or smells like fraud?
3
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4answers
474 views

If I rent out my own house for $2k and rent somewhere else for $2k, do I still make taxable income?

In the U.S., if I rent out my own house for $2k and rent somewhere else for $2k, do I still make taxable income?
1
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0answers
43 views

Proper depreciation/method/duration for conversion to in-law unit, in older single family home?

IRS publication 527 covers "Basis of property changed to rental use". My question is on the proper duration for the depreciation. Imagine a home was bought for $60k in 1950, with $10k of land value. ...
0
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1answer
107 views

personal heloc to pay off rental

I have 4 properties with reasonable cash flow. These are owned by my LLC. At current payment schedules, 1 rental pays off the property in 4 years, the next in 6 Years, the next in 9 years, the last ...
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1answer
640 views

Is it a wise investment to buy a second home and rent out the first?

I currently live in a house that I own with my parents. 2 years ago I got a job which lets me work remotely,and since then I wanted to move out of state because this house is in an state with killer ...
2
votes
0answers
127 views

what is repayment money for renting lets in UK?

I am almost about to sign a year's worth of tenancy agreement for a house in London. There is 4 weeks rent worth of Deposit and 8 weeks rent worth of Repayment to be paid in the beginning of the ...
1
vote
2answers
398 views

“Missing” Apartment Rent Payment

So I'm currently renting an apartment through real estate agent. I've been paying monthly. They claimed that they didn't receive the May payment and there is no unclaimed money in their account. I ...
2
votes
0answers
132 views

Rental income and mortgage interest deduction for married non resident alien

My wife and I acquired a property in the US in 2016 with a US mortgage. We started renting it that year and have been managing it ourselves since then (no rental management company). We are both ...
0
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4answers
234 views

How to approach building credit without a credit card

I am a recent college graduate and I've just landed a full time, good paying consulting job. I am 18 years of age and I would like to purchase a duplex(or some type of rental property) property in ...
-1
votes
2answers
246 views

How to buy a second home while keeping the first and not paying for two mortgages?

I currently live in my parents' house for which I am making the mortgage payments (as a kind of rent). But I would like to buy my own house and move out, and my parents don't want to sell their house. ...
2
votes
2answers
186 views

Is the £2 Statutory Credit Report Suitable For Renting

We are currently viewing flats for rental. Generally going through agencies at the moment. In order to apply for a rental property the agency obviously needs to run a credit check. They charge ...
4
votes
1answer
264 views

Can suspended passive losses of a former passive activity be used to offset capital gains on a current passive activity?

I had two rental properties, each of which had its own column on Schedule E. I purchased one in 2001 and one in 2007. The 2001 property has had minor Schedule E losses along the way, and has built up ...