Investment Property

LachiusTZ

LachiusTZ

Rogue Deathwalker Box
<Silver Donator>
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27,162
This is a shot in the dark, since my kind are rare here... Spent some time yesterday trying to find a work around for classifying a primary residence as an investment property, and was not able to do it.

Basically, I don't care about the capital gains exclusion from selling of the home in three to five, would rather expense the bitch. But besides the personal office space, couldn't find a work around...
 
K

Kedwyn

Silver Squire
3,915
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Single family? That won't work. There are a lot of issues with it from rent value being a benefit to you and losing deductions because you solely occupy your investment as a primary residence. You can make it work with a duplex or multi family but a single family you're better off taking your personal deductions via home office / itemization.
 
B

Burnesto

Molten Core Raider
2,142
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You'll have to recapture the depreciation whenever you sell. Are the current savings really worth potentially getting audited?
 
K

Kedwyn

Silver Squire
3,915
80
Its very difficult to depreciate a primary residence. The use of the business area has to be exclusive to business and can't be mixed.

Can I Deduct Depreciation on My Primary House? | Finance - Zacks

It can happen though. Apartment or residence on the second floor with an business on the first. Friend of mine father ran his pharmacy that way when we were kids. If you have a home office you aren't likely able to do this as the use would be classified as mixed personal / business use.

I doubt he qualifies to do such a thing but you never know.

He also isn't renting out his home to anyone he is living there so what he is asking to do is dubious at best.
 
LachiusTZ

LachiusTZ

Rogue Deathwalker Box
<Silver Donator>
14,472
27,162
Dubious is a very accurate description.

No asbestos.

I spent a few goes Saturday digging through parts of the tax code I had never heard of, couldn't find shit.

Stuck with whatever portion of the property I use as an office (or fraud and hope the statute expires). Looks like daddy is getting a very luxurious office! Might make part of the house an art studio for the wife.

Depends on the inspection Monday. Place might be condemned.
 
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