rental vs. 2nd home (by Chris [FL]) Jun 5, 2018 1:54 AM
rental vs. 2nd home (by Steve [TN]) Jun 5, 2018 4:57 AM
rental vs. 2nd home (by LindaJ [NY]) Jun 5, 2018 5:28 AM
rental vs. 2nd home (by Chris [FL]) Jun 5, 2018 6:01 AM
rental vs. 2nd home (by Deanna [TX]) Jun 5, 2018 6:16 AM
rental vs. 2nd home (by WMH [NC]) Jun 5, 2018 8:04 AM
rental vs. 2nd home (by cjo'h [CT]) Jun 5, 2018 6:12 PM
rental vs. 2nd home (by Still Learning [NH]) Jun 6, 2018 4:06 AM
rental vs. 2nd home (by Busy [WI]) Jun 6, 2018 5:26 AM
rental vs. 2nd home (by Chris [FL]) Jun 6, 2018 5:35 AM
rental vs. 2nd home (by Chris [FL]) Posted on: Jun 5, 2018 1:54 AM Message:
Hello All, We are buying a another sfh, we were planning to let family occupy until they can get established, newly legally immigrated.
So for taxes, in Florida, do I just claim it as a second home or a rental that I take a big loss on??
--73.35.xxx.xxx |
rental vs. 2nd home (by Steve [TN]) Posted on: Jun 5, 2018 4:57 AM Message:
If you aren't charging rent or charging well below normal rent for that market, then it likely won't be considered a rental property by the tax authorities. Why? Because you aren't the first person to think about doing this!
Also, there is a fairly low limit on how much loss can be deducted each year, so that "big" loss isn't really very big. --68.156.xx.xx |
rental vs. 2nd home (by LindaJ [NY]) Posted on: Jun 5, 2018 5:28 AM Message:
Do they have jobs? Have you considered renting to them, then maybe gifting them food or paying something else for them? You can gift anyone up to $14,000?? per year (not sure the exact number these days) You won't get the big loss because you are renting for a price, but depreciation starts, repair costs can be deducted. Otherwise you probably have a second home. --108.44.xx.xxx |
rental vs. 2nd home (by Chris [FL]) Posted on: Jun 5, 2018 6:01 AM Message:
Yes they have jobs, my wife will make them pay 50% of what the rent should be. It's helping the family, for a time, yes this temp, they are expected to stand up and move out.
Good 2c, thank you. --138.162.x.xx |
rental vs. 2nd home (by Deanna [TX]) Posted on: Jun 5, 2018 6:16 AM Message:
Your taxes might be different (I have no clue about state tax), but when I was chatting with my CPA about some deadbeats who owed me money, and whether I could deduct any losses on my federal taxes, he told me, "You don't deduct losses for uncollected rent--- you just don't get taxed for rent that never got paid."
So any losses are going to be out-of-the-pocket losses, like "I could rent this on the open market for $1500/month, but I'm renting it to family for $500/month, so that's my $12k/year gift to them." Or your $18k/year gift to them, depending on how diligent your relatives are. :P --96.46.xxx.xx |
rental vs. 2nd home (by WMH [NC]) Posted on: Jun 5, 2018 8:04 AM Message:
I agree about charging close to fair market value so you can call it a true rental. Then gift them back the difference. --50.82.xxx.xx |
rental vs. 2nd home (by cjo'h [CT]) Posted on: Jun 5, 2018 6:12 PM Message:
Chris, you might be splitting hairs on this one, so I'd say its a second home,and call it good............charlie.................. --174.199.xx.xx |
rental vs. 2nd home (by Still Learning [NH]) Posted on: Jun 6, 2018 4:06 AM Message:
Also depends on how long they stay and if you use it. Can’t remember the number of days, but if you visit and stay there x days a year it becomes a second home even if you rent it out between your use. --24.61.xxx.xx |
rental vs. 2nd home (by Busy [WI]) Posted on: Jun 6, 2018 5:26 AM Message:
I believe that charging well below FMV puts you in the position where the income from it is income, but you get to take deductions only up to the level of income. No losses allowed. I could be wrong....
--172.58.xxx.xxx |
rental vs. 2nd home (by Chris [FL]) Posted on: Jun 6, 2018 5:35 AM Message:
All good info, thank you all. --66.87.xxx.xxx |
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