Another Tax Question
While I'm on the subject of taxes...I thought I'd throw this one out there too...
During the last tax season I had owned just one property (the one I spoke of on the other post). I bought three others this past year, all of which I still own and rent, one of which was also a rehab. What on earth should I expect for this tax season??? Am I going to owe or should I expect some sort of return? I know this obviously depends on many things- but is there any good quesses out there or questions I can answer to help someone figure this out? I'm getting nervous about the up coming tax time since I funds are limited if I end up owing...
You should report your three rental properties on Schedule E. After taking all your rental income, rental expenses, and depreciation into account any net income is taxed as ordinary income. If instead you have a net pasive loss, Net passive losses up to $25K can be used to offset your other ordinary income before taxes.
Without seeing your actual income and expense statements, it is impossible to say whether you will have a net passive income or a net passive loss.
I see we live in the same area. Do you have a good accountant you could recommend...or maybe you are one???
Not really. I do my own tax returns. I use TurboTax software. With the tax program's interview technique, it's not really that hard to do my tax return.
I use TaxAct and am able to buy it online early in the season to start inputting data/info which assists me in getting organized and learning. The questions are invaluable for getting you thinking and organized. I've used Kiplingers, Tax Act, and TurboTax... all are good and have a good chance of knowing and teaching you the latest law changes. ** I agree, I would research that 1031 advice... mortgages are apples, diff between net cost and net sale are oranges.