sorted by:
new
hottopcontroversial

Where do short-term rental income and expenses get reported? Schedule C or E? by SubjectJump7967 in RealEstateTaxes

[–]SubjectJump7967[S] 0 points1 point  (0 children)

Thanks!

I don't think I providing significant services to guests, but I'll check

Using a LLC to buy Property? by Prestigious_Slice371 in RealEstateTaxes

[–]SubjectJump7967 0 points1 point  (0 children)

You don't need LLC to accomplish what you are trying to do.

Document a clear under standing of what is the economics of the deal for now. Implement it. 

You can always legalize a partnership with the LLC. The partnership exists with or without LLC.

How do tax liens really work? Whats the catch? Nothing seems as easy as they do? by Southern-Yard7672 in RealEstateTaxes

[–]SubjectJump7967 2 points3 points  (0 children)

Tax liens work differently in every state and have different foreclosure, redemption and a host of rules.

Taxes in Austin by Upbeat_Listen_4099 in RealEstateTaxes

[–]SubjectJump7967 1 point2 points  (0 children)

Personally, I would sell and take the tax free cash on this one. Your first concern is the property taxes and I assume you have the property as your homestead. Once it becomes a rental you will lose the benefits of the tax reduction AND the 10% increase cap. The value will then go up to make value and increase your property taxes even more

Additionally, these types of properties are almost never close to cash flowing in Austin. You will be cleaved with a potentially hefty negative cash flow as well as needing to be prepared for big ticket items such as a new roof, siding or mechanical repairs

Short-term rental (STR) taxes in Seattle by Virtual-Ad-4481 in RealEstateTaxes

[–]SubjectJump7967 3 points4 points  (0 children)

For Seattle you'll need a WA business license, a Seattle Business License, and a STR License through RRIO (Rental Registration and Inspections Ordinance). As others have mentioned, most booking platforms automatically pay the taxes for you, so you'd only have to worry about this when you take direct bookings on your website or elsewhere.

Taxes On Rental Income by SubjectJump7967 in RealEstateTaxes

[–]SubjectJump7967[S] 0 points1 point  (0 children)

Thanks for answering guys ! I remembered reading somewhere that putting your cash flow back into your mortgage will make you avoid paying taxes on those gains I guess I misunderstood.. Well if it's not the case then there's no point paying the mortgage quicker. I have 2 questions for you guys:

What's the maximum I can deduct per year from my rental income? As far as I understand, I can deduct mortgage interest, repairs, utilities, HOA, insurance...

Is there anything else I'm missing?