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rated:
Most of it. I finally hired a maintenance person so if he helps me on flips/ make readys, I include what I expect his labor to be. But basically I tell them what I think I'll have in it, they will loan up to that amount providing we're under 80% of the value, and they don't care what it's being spent on. If I want to write myself a $2,000 check for labor they don't care. They're in the business to borrow money, and our lender told me about a year ago they have a lot of money available to borrow at the moment so it makes sense to them I guess to loan it to what appear to be solid investments.

rated:
Seeking advise for tax filings and classifications under Repairs and Improvements. I read the IRS guidelines for Repairs and Improvements.

From website: "Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense."
http://www.irs.gov/publications/p527/ch01.html#en_US_2014_publin...

My interpretation is that I need to classify (1) which payments were for depreciable improvements, (2) when the payment was made and (3) what type of improvement was paid for (to determine depreciable life).

Is this how people are classifying repairs and Improvements?

Thanks in advance.

rated:
You also have a huge grey area concerning this: " if you are not required to capitalize the expense". I work in IT, and we only capitalize expenses over $5000. I'm not capitalizing every tool I purchased, it would be accounting nightmare. Here is some guidance I found, but doesn't address the monetary aspect.

http://www.dbbllc.com/newsletters/focus/mar2012/irs-clarifies-ca...

rated:
manrental said:   Seeking advise for tax filings and classifications under Repairs and Improvements. I read the IRS guidelines for Repairs and Improvements.

From website: "Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense."
http://www.irs.gov/publications/p527/ch01.html#en_US_2014_publin... 

My interpretation is that I need to classify (1) which payments were for depreciable improvements, (2) when the payment was made and (3) what type of improvement was paid for (to determine depreciable life).

Is this how people are classifying repairs and Improvements?

Thanks in advance.

  

Yes you have to sort repairs from improvements.    You can deduct repairs but you have to depreciate improvements.
The IRS page you linked to there goes on to explain what is considered an improvement with examples.
If I pay a plumber $200 to fix a leaky pipe then thats a repair.   If I pay an HVAC guy to install a new AC system then thats an improvement.
For me its a bit more unclear when you're replacing something like a new roof or new capret, I belive those are in the category of improvement and capital not repairs.


 

rated:
jerosen said:   
manrental said:   Seeking advise for tax filings and classifications under Repairs and Improvements. I read the IRS guidelines for Repairs and Improvements.

From website: "Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense."
http://www.irs.gov/publications/p527/ch01.html#en_US_2014_publin... 

My interpretation is that I need to classify (1) which payments were for depreciable improvements, (2) when the payment was made and (3) what type of improvement was paid for (to determine depreciable life).

Is this how people are classifying repairs and Improvements?

Thanks in advance.

  

Yes you have to sort repairs from improvements.    You can deduct repairs but you have to depreciate improvements.
The IRS page you linked to there goes on to explain what is considered an improvement with examples.
If I pay a plumber $200 to fix a leaky pipe then thats a repair.   If I pay an HVAC guy to install a new AC system then thats an improvement.
For me its a bit more unclear when you're replacing something like a new roof or new capret, I belive those are in the category of improvement and capital not repairs.


 

 I don't believe replacing carpet is an improvement if the tenants destroyed it, and you are putting the "floor" back to it's original state.   

rated:
drew2money said:   
jerosen said:   
manrental said:   Seeking advise for tax filings and classifications under Repairs and Improvements. I read the IRS guidelines for Repairs and Improvements.

From website: "Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense."
http://www.irs.gov/publications/p527/ch01.html#en_US_2014_publin... 

My interpretation is that I need to classify (1) which payments were for depreciable improvements, (2) when the payment was made and (3) what type of improvement was paid for (to determine depreciable life).

Is this how people are classifying repairs and Improvements?

Thanks in advance.

  

Yes you have to sort repairs from improvements.    You can deduct repairs but you have to depreciate improvements.
The IRS page you linked to there goes on to explain what is considered an improvement with examples.
If I pay a plumber $200 to fix a leaky pipe then thats a repair.   If I pay an HVAC guy to install a new AC system then thats an improvement.
For me its a bit more unclear when you're replacing something like a new roof or new capret, I belive those are in the category of improvement and capital not repairs.


 

 I don't believe replacing carpet is an improvement if the tenants destroyed it, and you are putting the "floor" back to it's original state.   

  It isn't, nor is replacing an HVAC system that's been damaged by tenant neglect. Just be sure to carefully document the need for replacements for use in the event of an audit. I know of several who have been audited for carpet and HVAC system replacements, but a picture (or ten) and a police report quashed that audit.  Remember, the IRS guidance on expensing is:  Improvements that "keep" property in efficient operating condition

rated:
sorry for OT...i got a vinyl siding quote, and it's been awhile since i did vinyl. was wondering if these numbers look fair. the house is 2200sqft but it's not a standard layout by any means, and there's [part of] a second floor. anyway - assume the measurements are true. this guy is a sub so he shouldnt have much overhead. is this too much?

33sq siding
370' soffit and fascia
pull off battens on entire house (it's currently wood board and batten siding...leaving the boards)
trim out about 5 windows

~$13k

the other quote i got was from a large siding company and it was ~$17k. i know this sounds open-and-shut but the last time i did siding i paid $4k for 3 sides of a 1900sqft [simple rectangular 1-story] house with 12' ceilings. they did kind of a shitty job but it got done.

rated:
solarUS said:   sorry for OT...i got a vinyl siding quote, and it's been awhile since i did vinyl. was wondering if these numbers look fair. the house is 2200sqft but it's not a standard layout by any means, and there's [part of] a second floor. anyway - assume the measurements are true. this guy is a sub so he shouldnt have much overhead. is this too much?

33sq siding
370' soffit and fascia
pull off battens on entire house (it's currently wood board and batten siding...leaving the boards)
trim out about 5 windows

~$13k

the other quote i got was from a large siding company and it was ~$17k. i know this sounds open-and-shut but the last time i did siding i paid $4k for 3 sides of a 1900sqft [simple rectangular 1-story] house with 12' ceilings. they did kind of a shitty job but it got done.

  You probably don't need this, but others might.  SS droppin science...

http://ohiopremiumproperties.com/?p=269
 

rated:
manrental said:   Seeking advise for tax filings and classifications under Repairs and Improvements. I read the IRS guidelines for Repairs and Improvements.

From website: "Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense."
http://www.irs.gov/publications/p527/ch01.html#en_US_2014_publin...

My interpretation is that I need to classify (1) which payments were for depreciable improvements, (2) when the payment was made and (3) what type of improvement was paid for (to determine depreciable life).

Is this how people are classifying repairs and Improvements?

Thanks in advance.


Yes that is accurate. there is also a safe harbour limit, if you are under it you can expense everything

rated:
Oh, I hadn't heard of that safe harbor rule. Apparently its new for 2014. I found more here :

http://www.nolo.com/legal-encyclopedia/small-taxpayer-safe-harbo...


The safe limit is $10k or 2% of the property value whichever is less.

rated:
solarUS said:   sorry for OT...i got a vinyl siding quote, and it's been awhile since i did vinyl. was wondering if these numbers look fair. the house is 2200sqft but it's not a standard layout by any means, and there's [part of] a second floor. anyway - assume the measurements are true. this guy is a sub so he shouldnt have much overhead. is this too much?

33sq siding
370' soffit and fascia
pull off battens on entire house (it's currently wood board and batten siding...leaving the boards)
trim out about 5 windows

~$13k

the other quote i got was from a large siding company and it was ~$17k. i know this sounds open-and-shut but the last time i did siding i paid $4k for 3 sides of a 1900sqft [simple rectangular 1-story] house with 12' ceilings. they did kind of a shitty job but it got done.

   Neither of those estimates would be unreasonable in my market for a decent job.  I find that the materials for vinyl and metal work on houses has gone up a lot in the past 4 years!

rated:
What's the current siding on your house? How come you want vinyl?

rated:
rufflesinc said:   What's the current siding on your house? How come you want vinyl?
  like i said in my post - it's wood board and batten and rough cut at that, so with 40 years on it it's not looking great. you'd have to either stain it every few years, or paint it with about 3 coats initially and then every couple years (including the 2nd floor - PITA). the house is on a river and surrounded by trees so there's a lot of moisture. vinyl is the best option for this case, there's no question.

rated:
cajundavid said:   
solarUS said:   sorry for OT...i got a vinyl siding quote, and it's been awhile since i did vinyl. was wondering if these numbers look fair. the house is 2200sqft but it's not a standard layout by any means, and there's [part of] a second floor. anyway - assume the measurements are true. this guy is a sub so he shouldnt have much overhead. is this too much?

33sq siding
370' soffit and fascia
pull off battens on entire house (it's currently wood board and batten siding...leaving the boards)
trim out about 5 windows

~$13k

the other quote i got was from a large siding company and it was ~$17k. i know this sounds open-and-shut but the last time i did siding i paid $4k for 3 sides of a 1900sqft [simple rectangular 1-story] house with 12' ceilings. they did kind of a shitty job but it got done.

   Neither of those estimates would be unreasonable in my market for a decent job.  I find that the materials for vinyl and metal work on houses has gone up a lot in the past 4 years!

crazy, as SS would prolly pay like 8k tops for this job....and 8k is what i reckoned it would be before i got estimates. have materials really gone up this much??? seems hard to believe.

rated:
solarUS said:   
rufflesinc said:   What's the current siding on your house? How come you want vinyl?
  like i said in my post - it's wood board and batten and rough cut at that, so with 40 years on it it's not looking great. you'd have to either stain it every few years, or paint it with about 3 coats initially and then every couple years (including the 2nd floor - PITA). the house is on a river and surrounded by trees so there's a lot of moisture. vinyl is the best option for this case, there's no question.

  I am a painter and there are some great solid color stains you could paint the house with in 2 coats that would hold up well even on the Gulf Coast.  They cost me over $50 per gallon so it wouldn't be a cheap finish but (guessing) likely 1/3 to 1/2 the cost of re-siding. Power wash it down once a year to maintain it. But that still might not be ideal for your situation.
I buy my own supplies and do my own siding, soffit, facia, window trim, etc on my rentals and find that my costs have tripled for many items in the past 3 years or so.  Good luck!

rated:
cajundavid said:   
solarUS said:   
rufflesinc said:   What's the current siding on your house? How come you want vinyl?
  like i said in my post - it's wood board and batten and rough cut at that, so with 40 years on it it's not looking great. you'd have to either stain it every few years, or paint it with about 3 coats initially and then every couple years (including the 2nd floor - PITA). the house is on a river and surrounded by trees so there's a lot of moisture. vinyl is the best option for this case, there's no question.

  I am a painter and there are some great solid color stains you could paint the house with in 2 coats that would hold up well even on the Gulf Coast.  They cost me over $50 per gallon so it wouldn't be a cheap finish but (guessing) likely 1/3 to 1/2 the cost of re-siding. Power wash it down once a year to maintain it. But that still might not be ideal for your situation.
I buy my own supplies and do my own siding, soffit, facia, window trim, etc on my rentals and find that my costs have tripled for many items in the past 3 years or so.  Good luck!

even painted, this material will not look great, and then there's the maintenance...vinyl will immediately update the appearance.

i just finished re-siding another house...by myself. it was 8" wood dutch lap and came out beautifully but took me a bunch of weekends. i'd love to save myself the money and do this job, but i really, really don't want to, and a siding guy can work a helluva lot faster than I can.

rated:
solarUS said:   
cajundavid said:   
solarUS said:   
rufflesinc said:   What's the current siding on your house? How come you want vinyl?
  like i said in my post - it's wood board and batten and rough cut at that, so with 40 years on it it's not looking great. you'd have to either stain it every few years, or paint it with about 3 coats initially and then every couple years (including the 2nd floor - PITA). the house is on a river and surrounded by trees so there's a lot of moisture. vinyl is the best option for this case, there's no question.

  I am a painter and there are some great solid color stains you could paint the house with in 2 coats that would hold up well even on the Gulf Coast.  They cost me over $50 per gallon so it wouldn't be a cheap finish but (guessing) likely 1/3 to 1/2 the cost of re-siding. Power wash it down once a year to maintain it. But that still might not be ideal for your situation.
I buy my own supplies and do my own siding, soffit, facia, window trim, etc on my rentals and find that my costs have tripled for many items in the past 3 years or so.  Good luck!

even painted, this material will not look great, and then there's the maintenance...vinyl will immediately update the appearance.

i just finished re-siding another house...by myself. it was 8" wood dutch lap and came out beautifully but took me a bunch of weekends. i'd love to save myself the money and do this job, but i really, really don't want to, and a siding guy can work a helluva lot faster than I can.

  Next to roof, siding seems like the most expensive house remodel job. I spent $6k on all the windows on the house and garage. The vinyil siding estimate was $8k. I didn't plan on replacing the siding but i asked the Lowes guy to quote it for me with the windows. Yeah, unless it's something like wood where you have to paint every few years, no way am I replacing siding.

rated:
After researching, this is my understanding of "Safe Harbor for Routine Maintenance"

Safe harbor for small taxpayers

This regulation allows recurring improvements to be expenses as maintenance if it's expected to recur within 10 years.The regulation regarding "Safe Harbor for Routine Maintenance" is at http://www.irs.gov/irb/2013-43_IRB/ar05.html#d0e686 .

This is different that the safe limit is $10k or 2% of the property value whichever is less that's mentioned by fellow Fatwalleter: jerosen http://www.nolo.com/legal-encyclopedia/small-taxpayer-safe-harbo...

rated:
There has been reports of banks calling due on sale clause when transferred to LLC.

http://www.biggerpockets.com/forums/311/topics/183825-due-on-sal...

rated:
rufflesinc said:   tehlorax said:   
rufflesinc said:   
dmikester10 said:   I was talking to a co-worker who has some rentals. She was saying lately that she has renters leave the place a mess and then don't pay the last months rent. So when you hold back their security deposit, you don't have anything to hold back because of the skipped payment. How do you keep that from happening?
Do regular inspections, if you find significant damage, bill on the spot.

  Do you actually do that?

Yes, twice a year, mainly to replace furnace filter and washer lint filter. I also do inspection before a renewal. If you are in a cold climate, i highly suggest this.


Hi all,

Following up on this. I rent out a townhouse and am about 3 months from my first tenants renewal. I haven't been to the property at all in the past year and there's been no issues or maintenance.

Knock on wood.

I do figure it is prudent to do this kind of inspection before I renew him.

I know he changes the furnace filter. I don't know what a washer lint filter is. Since its a townhouse I figure I should get the gutters cleaned. Roof is pretty new. Is there any other preventative maintenance that I should consider doing?

rated:
Yeah if you never clean the gutters , should clean them asap. But on an annual basis, the best time is in the fall after all the leaves fall but before the temps drop below freezing. If it's cold, dress warm .. last year I cleaned out all the gutters and got a cold a week before going to hawaii. thank god for nyquil.

Washer lint filter goes on the end of the washer drain hose. You only need them if you have an older home without dedicated box with hole for the drain and you just drape it over the laundry tub.

rated:
Isn't the HOA usually responsible for exterior work on a townhouse?

rated:
tehlorax said:   Isn't the HOA usually responsible for exterior work on a townhouse?
  

Usually, perhaps. In this case all they do is shovel snow and maintain the common areas.

rated:
rufflesinc said:   Yeah if you never clean the gutters , should clean them asap. But on an annual basis, the best time is in the fall after all the leaves fall but before the temps drop below freezing. If it's cold, dress warm .. last year I cleaned out all the gutters and got a cold a week before going to hawaii. thank god for nyquil.

Washer lint filter goes on the end of the washer drain hose. You only need them if you have an older home without dedicated box with hole for the drain and you just drape it over the laundry tub.


If you have this, i suggest spending the nominal $ to install a dedicated drain, you can T it into the utility sink.

I've had utility sinks overflow from washers draining into sinks, clogged with lint...fortunately was unfinished basement, with floor drain, so no big deal.

rated:
So obviously this a huge thread… only 12.5 years old… but can someone point me to helpful resources for a first time property renter? I'm looking to begin renting my one bedroom condo in downtown Seattle… and would love any advice/guidance.

Thank you.

rated:
scottcoltron said:   So obviously this a huge thread… only 12.5 years old… but can someone point me to helpful resources for a first time property renter? I'm looking to begin renting my one bedroom condo in downtown Seattle… and would love any advice/guidance.

Thank you.

  
Are you a landlord?      This thread is generally oriented towards landlords.

If you're just renting an apartment then I'd recommend you get yourself renters insurance and read the landlord tenant laws in Seattle.
 

rated:
Solarus started the following.

http://www.fatwallet.com/forums/finance/1423456/

Unfortunately...some tenants started to hijack the thread.

rated:
Thanks @jerosen... I will be the landlord. I'll look into the laws for sure. Just didn't know if there was a "how to" type of site or book or anything that FatWallet folks recommend.

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