Checking Account Question
I have a seperate checking account that I used to do a rehab this last year. I lost money on it and want to show that on my taxes. I think I do this on a schedule C, correct me please if I am wrong. Well now I plan on buying a rental property. Can I use the same checking account for this? I put some money back in it and want to use it for my next project. Will this be a problem when tax time comes? Is there an easier way? I dont want to set up a business entity until I discover that I can do something that actually makes money so I am sticking with a sole proprioter for now. Thanks.
sure, you can use the same checking account.
Both ....
Is the house an investment or for your personal residence?
im exploring both possibilities: an investment one for myself and a primary residence for a relative (purchased by that relative).
Except for depreciation, you only get a tax benefit for a portion of the money you have spent on your property.
You can only claim a property tax deduction for the amount of taxes you actually paid during the year. Same with mortgage interest. It does not matter when during the year you buy the house. True you get a larger tax deduction if you buy at the beginning of the year, but buying early in the year means you will have paid more in mortgage interest and property taxes than if you buy at the end of the year.
I like buying in November and December. Most real estate markets are at their slowest between Thanksgiving and New Years Day. Sellers might be more inclined to be flexible in their minimum acceptable pricing during this time.