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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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i am looking into purchasing 2 realeste investment properties

This answer was rated:

i am looking into purchasing 2 realeste investment properties that i plan on haveing rented out this year. I have a property manager that lives in the area. I will have the following expences:
1. Travel to visit these properties
2. i will also have to invest some money for rehab and general maintance
3. I will have to purchase a couple of appliances.

I have looked into an LLC and the loan officer has stated that the loan program will not let me sign these properties to an LLC.

What write off options should i be tracking for the upcoming tax filings for 2013?
What am i justified in writing off?
What tax credit should i be expecting to recieve (these are my first two morgatages)?

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

You can write off any expense that you incur in order to generate income from these properties

MyVirtualCPA :

You can write off repairs, maintenance, cleaning, advertisement - anything

MyVirtualCPA :

The big writeoff will be depreciation.

MyVirtualCPA :

I see you rated our service as poor - I was not done calculating your response, because I was waiting for input from you

Customer:

i will change it, the screen would not let me advance without rating.

MyVirtualCPA :

Okay, thanks for letting me know about the error.

Customer:

what standard deduction should i be expecting with all the changes to the first time home buyer credit?

MyVirtualCPA :

The first time homebuyer tax credit is no longer offered

MyVirtualCPA :

and it was only for primary residences, not for investment properties

Customer:

thats what i thought.

MyVirtualCPA :

There are no tax credits for investment properties, only deductions to generate income

Customer:

do you know of any websites that have good templates for tracking expense in the form that the IRS would like to see if i ever get audited?

Customer:

also, how long would i typically need to wait before i can pass the Properties into an LLC?

Megan C and 4 other Tax Specialists are ready to help you