What is the US tax ramification of tearing down rental property that I own and building my home on that site?
826088
From a real estate tax perspective, the applicable tax rate will be on assessed value which may means that taxes could potentially go up. As a home owner, you will be able to expense the interest expense on the loan in your tax returns while as a renter, you cannot expense the rent.
726088
You can deduct state, local, and foreign real estate taxes on ALL real estate you own.\n\nYou can deduct mortgage interest on ANY two homes you own.  You can only deduct mortgage interest on the first $1 million (total) of loans used to buy, build, or improve your home and only on the first $100,000 of other mortgage loans (home-equity).  If you think you may be over these amounts, or if you want to investigate further, I suggest reading the attached publication from the IRS.
193898
If you are refering to zoning then you will need to ask the zoning or planning department in your city or county if you can do what you want to do.\n\nIf it is because of a homeowners association and they forbid "commercial business" then you better check with them as you will just have headaches later for not finding out and wasting time if you indeed couldn't.\n\nNow what you are renting will make a difference. If you are talking about a house, apartment etc, then as long as the zoning is cool you can do it. If it is a part of your home (duplex, triplex etc) then its not going to be considered commercial if you are just renting out the extra units. If you are talking storage units then yes that would be considered commercial.\n\nthe zoning is the key, call them up and ask lots of questions
249200
Are you talking about a property that you own? If so Yes mortgage int and property tax are deductible as well as depreciation. Any major repairs you make are supposed to go in to the basis of the property(new roof) and that will also be depreciated. the way it is depreciated depends on the kind of rental property it is(res or non res) and the date the property was purchased. I would go to IRS.gov and pub 946 how to depreciate property.
924931
It is still legal.It sound as though it's got a Deed Of Covenent on it,which does stoop you from building.This next bit will take some unravelling.You'll need a solicitors hellp,as you will need to find the original owner,and see if they will agree to remove the covenent.It may cost quite a bit of money.
923798
You shouldn't, but call your agent to make certain.\n\nDo you have rental reimbursement on your policy?  It's inexpensive and worth it when you need it.
500140
I have no idea.  You'll likely call different corporations and offer your home.  I have never heard of such a thing as this.  \n\nIs your home special? \n\nI have seen ads in newspapers for renting out houses during huge events like when the Olympics come to town.
542878
Check your CC&Rs (Conditions, Covenants and Restrictions) which sets out the rules for condo residents.  It should set out specifically what consequences there may be for unpaid fees to the HOA.  But I agree, why don't you just pay it?
900881
According to page 97 of IRS publication 17:\n\n"Personal Use Property - Property held for personal use only, rather than for investment, is a capital asset, and you must report a gain from its sale as a capital gain (on Schedule D).  However, you can NOT deduct a loss from selling a personal use property."\n\nThere are four types of property, personal-use (your boat, car, home, clothes, furniture), investment-use, business-use, and inventory.  You mentioned being able to write-off the loss on your home.  If you see anywhere where it says that, please let me know.\n\nSo, if you sold your boat at a profit, Uncle Sam wants a cut.  If you sell it at a loss, too bad.  Not fair, is it?
839409
Dazed and Con has some very valid points. I would like to elaborate on them. Personally, I don't believe in the "rent to own" - it is a load of crap that doesn't give you any tax benefits. If you are able, take out a 5-year interest-only fixed loan. By that time, you will be out of school and can refinance the property. You should have built up enough equity by that time to not have to worry about a negative amortization. You can pay down the principal during this 5 year time if you wish. When you re-fi after you are out of school and working, you can roll some of the student loans intot he re-fi if you fix the house up enough to get a good high appraisal. This way, all of the interest including your student loan money would be tax deductible. This brings me to the last issue. Are you prepared to pay back student loans plus Uncle Sam after you graduate? If not, then having a house that is yours, not some "rent-to-own" nonsense, will give you the type of write-offs you will need to cut down or eliminate those tax checks. If the landlord is not willing to sell the house to you under a true normal sale scenario, then he/she is not serious. You never said whether or not you have a down payment. If not, then the rent-to-own may possibly work if you have an iron-clad conract with regard to your down payment coming from your rental payments of 4 years, an end date to the time when the property will be put into your name, etc. Take any rent&#92;-to-own contract you end up with to the local court house and record it against the property to stop anyone from selling it out from underneath you. Sorry to be so cynical, but I have seen many a rotten landlord on these. Buy it outright if you can.
1118471
call your local assessor's office for the county your home is in. they should be able to help you!\n\nalso, be sure to make sure you've applied for the appropriate tax rate...is it your primary residence, or a vacation/rental home? go to the assessors' office and have this updated if it's incorrect.
884855
If the property deed said and or and your name was second you will have no taxes to pay. The property will just roll over.
246716
yes they would.  the value of your new home would be taxed accordingly.  a rebuild is taxed higher, leave a wall up and its only a remodel, taxed lower.  But to be safe, check with the city.
47977
I'd take the house - you can rent it out and have income.  If it burns down, you still have the lot value.  If you take the car, once it is ruined, it is gone.  The value in the car is in your ability to liquidate the asset, and to do that, you must find a buyer ready, willing and able to purchase the vehicle. The real estate has the potential to increase in value and is useable.  The vehicle seems more of a liability, and is impractical, unless you want to rent it out for weddings, etc.  Nonetheless, you still run the risk of depreciation every time you drive the vehicle out of the garage.  It's not like you can drive that car to the supermarket.  Of course, if you're looking to liquidate quickly, and have a qualified buyer, take the car, provided it is worth more than the house.  As an attorney, I can PROMISE you that the cash inheritance is NOT tax free! (Its called "estate tax") I'd say skip the cash, because you can liquidate both the other choices and yield more than the cash after taxes.
154451
Total up all the rents for the year and then subtract out all the expenses.  Taxes, any utilities the landlord pays, etc.  Make sure to factor something in for future maintenance.  There will be some big ones - roof, furnace, windows...
976939
YOU MAY WANT TO READ THIS ANSWER -- THE OTHERS ARE WRONG !!!\n\nYes, your understanding is correct that when you convert a rental property into a principal residence there may be capital gains consequences.\nIf you have never lived in this property but are contemplating doing so, what you need to do in order to determine whether there is a gain is to obtain a current "fair market value" of the property. In your case, you will want as low a value as possible, so get it appraised or ask a real estate agent to give you a potential selling price given the area, market values, and condition of house (so get this done BEFORE you make any repairs).\nTo determine if there is a CG : take the current FMV and subtract from it the price you purchased the house for (example....if you bought it for 80K and it is valued at 96K when you move in...then your gain is 16K) but from this 'gain' you get to subtract any costs or outlays you incurred (these include legal bills to purchase the property + land transfer taxes + appraisals + capital improvements to the property that were never expensed such as new furnace or new roof or new appliances etc....) so to continue the example...if these totalled 12K, then your CG would now be 16K - 12K = 4K...so you would need to pay tax on HALF of this gain or 2K. The tax would be whatever your tax rate is for your income level x 2K (21%, 31%, as high as 46%).\nIf your CG is actually negative, then there is NO tax owing as there is NO capital gain.\nAlso, here's a small but significant point, if you have not been claiming the rental income on your tax returns these past years, then you certainly would be foolish to all of a sudden claim capital gains.\n\nIn a nutshell, you will want to have as LOW a fair market value as you can currently, have as many outlays accounted for as possible (many of these will be found on the Statement of Adjustments from the lawyer at time of purchase -- also any bills for improvements) as these go to lessen the 'actual' or deemed gain.\nAlso, if you initially did live in the house for a time and then converted to rental...then this may be of benefit as when you converted to rental (there is no CG as it was primary residence) the FMV at that time becomes your ACB - Adjusted Cost Base, which you use to calculate the CG instead of the purchase price.\n\nAlso, be careful reading the advice some are giving -- they really sounded unknowledgable.
416059
Unfortunately not. But you can claim all sorts of things, including expenses relating to maintaining and upkeep of the home based on the same portion or percentage of your home that you use for business (office, and a washroom, living room for presentations, etc.) Here in Canada we can base that on how many rooms in the home we use for business or the actual floor space. It might be 4 rooms out of 8, which would be 1/2 and allow us to claim 1/4 of the homes heat, maintenance and mortgage or rent. \n\nThere's some good relevant Tax Reduction information out there - folks who keep up with the current laws that can help you out a lot just by researching their stuff.