I guess it also means that if I can find a suitable duplex for $1.8M, it’s worth pursuing because it does save money, but $2M is less so (since there’ll be more maintainence costs that are not immediately deductible)
Why not buy a two unit condo building? Theory being the condos would appreciate faster than a duplex.
I’m not sure what the difference is between that and a duplex.
My goal, though, is not appreciation, but reducing the increase in housing cost when buying a house vs. current rent.
The difference is a larger target market for resale ---- better liquidity.
Just saying that all other factors being equal, two separate condos in one building is more desirable than a duplex.
The difference is a larger target market for resale ---- better liquidity.
Just saying that all other factors being equal, two separate condos in one building is more desirable than a duplex.
I see.
I don’t want to live in a condo. Would prefer a house.
Also, I believe the current forum mantra is “never sell.”
The other thing is that the larger square footage properties tend to have a better price per sq. ft
Can you aggregate all the loss for a rental over the years and reduce the income when you sell for a profit down the road? can the losses in schedule E be offset with your Stock gains for same year?
Yes & No
So it would make all the sense to show losses on rentals while paying off primary (or invest elsewhere). One more: Can we take the loss on one and offset a gain on others (rentals)?
No
I was looking at the exact same questions last month. Here’s the thread
Got following answer from HnR Block “Depreciation recapture will apply to any improvements but not to appliances.”
Can you aggregate all the loss for a rental over the years and reduce the income when you sell for a profit down the road?
Yes, 100% sure as I did this year tax return.
can the losses in schedule E be offset with your Stock gains for same year?
No, SCH-E can not offset Stocks.
You can not offset Sch-E with your income except if you are a real estate professional. You need to work 750 hours/year as RE pro and if IRS audits you need to prove it.
If you are like elt1 or ptiemann, (there may be others I did not specify here) they are qualified to offset.