I spent $70,000 to fix up my rental property. The yearly income is $2,500. What is the best way to offset the rental income for tax purposes?

Asked by Ken22992, Estates At Wooded Cove, Plano, TX Thu Apr 7, 2011

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Michael Cheng’s answer
Michael Cheng, Agent, San Jose, CA
Tue Apr 12, 2011
Absurdly in California, all the sales agents and brokers go through a rigorous process of courses and exams in the real estate profession just to learn that they are specifically NOT allowed to provide any real estate advice that pertains to taxes and laws, two of the most significant areas of uncertainty for the general public. I could have been more helpful back when I wasn't accredited by the state.

In any case, it's difficult to answer your question. If you're in TX, the tax laws may be different from CA. And, without specifics about your financial situation, any answer would be a shot in the dark and not necessarily optimal for your tax situation. Choices between electing to expense or depreciate, increasing your leverage or not, and aggregating your rental properties all require financial details which I'm guessing you wouldn't be comfortable in sharing on this forum anyways.

So, my recommendation is to ask the advice of an experienced property investor or a CPA familiar with property taxes. Good luck.
Web Reference:  http://www.archershomes.com
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Michelle Car…, Agent, Coppertino, AL
Sun Apr 10, 2011
You need to speak with a tax specialist about this rather than this forum on Trulia. If you don't already have one, this will be a tough time to start with a new person because April 15th is almost here.
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Terri Vellios, Agent, Campbell, CA
Fri Apr 8, 2011
This can only be answered by your trusted tax adviser. Real estate agents can not advise on tax or legal nature.

Have an Amazing day!
Web Reference:  http://terrivellios.com
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