I am studying Real Estate materials, and I just learned that a person who flips to many houses can be considered a dealer. Once a person is considered a dealer, he/she won't be able to depreciate any of their rental properties. Why would a person want to depreciate a rental property?
2007-01-05 11:15:53 · 4 answers · asked by Christopher B 6 in Business & Finance ➔ Renting & Real Estate
You would get a larger tax write off by depreciating a rental property. It make sense if you plan to hold the property for a long time.
2007-01-05 11:22:48 · answer #1 · answered by QandA 3 · 1⤊ 0⤋
If a person is a dealer, he probably is not holding it to rent. He is holding to sell immediately. If a person rents, they want to recover the cost of the property via depreciation to reduce the taxes.
2007-01-05 11:23:05 · answer #2 · answered by beached42 4 · 1⤊ 0⤋
does no longer be worth it for breaking even. The HOA fee ought to boost fee of the dues and circulate away you paying the ameliorations and as properly that could have a bylaw to ward off you from renting out the properties. i could think of long and tricky earlier making an investment in something such via fact the valuables your watching.
2016-12-12 04:50:52 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Tax Breaks!!!!!!!!!!!!
2007-01-05 11:18:21 · answer #4 · answered by Anonymous · 1⤊ 0⤋