Your adjusted basis is original basis + expense of sale (includes staging but also other costs) − depreciation allowed or allowable + capital improvements. You can see this on Form 4797, Part III; rental property is most likely section 1250. In your example, it'd be $1.06 million minus depreciation (hopefully you took depreciation on the furnace and water ...
The depreciation expenses that you claimed lower the cost basis for the house, increasing the amount of capital gain you are taxed on (subject to any exemptions, etc.)
So your cost basis will be the initial price of the house (plus some closing costs potentially), plus any capital improvements , minus any depreciation claimed. It does not matter if the house ...
As a Southern California Realtor, I can definitely say if you can buy a house on your own, do it. For no other reason than to keep your finances separate, but also because you lose the ability to use some programs if you have already purchased a home.
If you have a good credit score and can cover 5% closing, why not go conventional? The only reason would be ...
Yes, you can use FHA loan for an investment property, as long as you live there as your primary residence. This is called duplex investing or house-hacking:
I want to invest in real estate for the purpose of renting or using as
an Airbnb to help establish future financial freedom. I'm trying to
understand if it would be a wise financial decision if I were to get
an FHA loan on an investment property while my girlfriend were to get
a loan on another property where we would live.
You will be required to live in ...
"Wise" is very subjective. Some on this site (me included) would not call going into debt for $250K ($500k between the two of you) to buy an investment property "wise". Especially before you graduate and have a good job.
I would call it "very risky". You might be okay and end up with two great properties that make you a ton of ...
I've recently purchased an out of state rental property. I'd like to
be ahead of the game and fully grasp the concept of depreciation so
that when tax season comes around, I won't be clueless.
Also, based on my what I've been reading, does this mean I get a check
from the IRS for $2,178.03?
I am not going to address the math involved in calculating the ...
If do $63,500 * 0.0348484848 = $2,178.03 - Is $2,178.03 the correct
amount I can write off in terms of depreciation on my rental property?
No, it looks like you've applied the half month adjustment to every year.
You've got 330 months to depreciate the entire improvement cost (houses are viewed as improvements to the property/land)
Monthly depreciation = 63,...