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Can I sell one of the two buildings and retain the other Yes, I would assume these are separate parcels. What are the implications on the 1031 None. Can I keep all the 1031 rollover/basis/cap gai …

Generally, if you sign a contract - you have agreed to it. You purchased the insurance coverage based on certain terms and conditions that were known to you and agreeable to you, and the insurance com …

In the US LLC is a disregarded entity for tax purposes and is effectively ignored. In California LLC provides liability protection and limitations. In return you're liable for an LLC tax which is at m …

There's no "overall" limit. The 26 CFR 1.263(a)-1(f)(ii) talks about cost limit per line item or per invoice. The CFR limit is $500 per such, but it was modified by the IRS (notice 2015-82) to $2500 p …

A trust is not a person. Trusts file a different tax return using form 1041, and are required to file if they have (see instructions): Any taxable income for the tax year; Gross income of $600 or mo …

I'm assuming you're in the US, given form K-1 for a partnership mentioned. Generally up to 25K of rental losses can be deducted from other income, subject to MAGI limits. As a limited partner in a RE …

You prorate the deduction based on the business use days. For the days when the property is not available for rent you cannot deduct the expenses. See the IRS Publication 527.

Yes, absolutely. These are expenses related to your trade/business and you can deduct them. You should check under what conditions you can deduct them in full, and if these are not met you may need to …

This is not entirely how it works, but it can cause some temporary cash-flow problems due to taxes shifting. When you're paid for a whole year at once, you as a cash basis taxpayer recognize the incom …

You're asking for an investment advice, and that's generally off-topic here. Several factual pointers about California real estate, especially SF Bay, that may help you though: People don't sell prop …

Several comments first: If rent is $X/month and all in mortgage is also $X/month, it would suck to need to pay income tax on $X x 12 for the year, when it all went towards paying the mortgage This i …

If you're referring to the Sec. 121 exemption, then no. It is explicitly for principal residence: Gross income shall not include gain from the sale or exchange of property if, during the 5-year perio …

If that were the whole story, we would each year report the appropriate things on 1040 schedule 1. I'd say Schedule E, not schedule 1. Schedule 1 is for primary/secondary residence, which this is no …

You generally have it right. The election must be explicit on the return. Keep in mind that in case of mixed personal and business use, you may not be able to actually deduct all of the expenses (in s …

You can talk to mortgage bankers/brokers before applying, they'll be able to provide you a ballpark estimate just based on the information you've provided here. After that you can "officially" apply, …