Amory Blaine

I’m trying to understand what I can legally deduct for tax purposes related to a rental property purchased this year.

I purchased the property in 2018 and have spent approximately $20,000 between capital expenditures and expenses in order to get it rentable. I would estimate $7,000 in expenses, primarily interest on the mortgage and painting, and the remainder capital expenditures (new flooring, cabinets, counter tops, new fixtures, etc). However, I will not have it rented by December 31st. If the property is not rented in 2018 can I still deduct the $5,000 of start-up costs? Do I have to be marketing the property in order to do this? Or can I deduct the $5,000 even if I have not listed the property for rent yet?

Planning a trip to coastal Maine this summer. Would love any suggestions on accommodations, restaurants, activities, etc. Would especially like to hear about "under the radar" towns.

Right now, I'm thinking mostly small B&Bs, but could definitely be convinced by a great hotel or resort recommendation.

Thanks everyone. I'm fairly confident in my ability to complete form 1120-H so I will give it a shot this year.

Do I need to file a Louisiana return as well? If so which form?

I own a condo in a 6-unit building in Uptown New Orleans. For the past 10 years we have handled all dues collection, insurance payments, and maintenance on our own between the owners. Circumstances are changing and we've decided that we need a property/building manager to handle essentially everything in common (i.e. no rent collection or unit maintenance).

Two questions:

1. What should we expect to pay someone to handle dues collection, insurance payments, oversee any common area maintenance and upkeep, and hire and manage contractors when necessary for building repairs?

2. What would you look for in terms of this type of service? Do they need to be insured in anyway or have any type of license? Any special qualifications we should look for?

In addition I'd be happy to take any recommendations in the New Orleans area or any other advice that I haven't thought to ask about.

Thanks in advance.

Where is the property?

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Bought my house in July 2012, purchase price of $213k, discounts brought it down to $205k, appraised for $218k, put down about 12%.

Mortgage holder is Wells Fargo, got appraisal done through them in September 2014 (costs $400) to remove PMI, house needed to appraise for at least $226k, appraised for $240k. PMI removed about 2 yrs early and saved me about $2k.

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Did you make improvements to the property? I was told I could not remove PMI with a new appraisal with no improvements.

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I'm enrolled in the post tax (roth?) 401k

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Someone better versed than me can probably clarify, but for a couple years I thought my "post-tax" contributions to my 401(k) were to a "Roth" 401(k)... they weren't. From what I understand, in the "post-tax" plan you contribute post-tax, but still have to pay tax on the gains (not contributions) when you withdraw at retirement. In a Roth 401(k) plan you contribute post tax, but pay no taxes when you withdraw.

I would double check how your plan works. If it's not a true Roth 401(k) I would switch to pre-tax no matter what the match situation is.

I always assumed I could max out both, but when I logged in to my 401(k) this morning I saw this note:

"Special note about IRS contribution limits for 2016: In 2016, the IRS before-tax and Roth contribution limit will remain at $18,000. For those turning age 50 or older in 2016 and contributing the maximum amount permitted by the plan, the catch-up contribution limit will remain at $6,000, for a total IRS contribution limit of $24,000."

Which makes me question my ability to do both. Is the "best" I can do max out the Roth at $5,500 and contribute $12,500 before-tax to the 401(k)?

If I were trying to save $23,500/year what is the best way to structure it?

Thanks in advance.

Currently maxing out ROTH IRA and contributing 8% of salary to 401(k)... company matches 6%. I contribute $1,700 to my HSA and I'm trying to decide if I increase the HSA to the max contribution of $3,350 or increase my 401(k) contribution by $1,650?

Also, if I ever switch from a HDHP to a PPO can I continue to use the money in the HSA? (I know I won't be able to continue to contribute.)

Thanks in advance.