Question for Landlords here

[Shaggy]

4a) Assuming you manage it yourself and get paid cash in hand by the tennants- you declare this on your tax return right? Like an honor system? *cough cough*

a) Good tenants will be reluctant to pay cash without getting a reciept.

b) Some states/provinces give tax credits to people who pay rent and have low income. If your tenants claim these credits the tax man might wonder why you didn't claim the income.

[Ski Monkey]

You can avoid the capital gains tax by living in the property for two years out of the five-year period before you sell it.

Isn't that only good for up to 250k for single people and 500k for married couples?

You can also defer your taxes with a 1031.

[steve]

Isn't that only good for up to 250k for single people and 500k for married couples?

You can also defer your taxes with a 1031.

yes, and not sure about the 1031.
a $250K deduction is no joke; neither is $500K.
a deduction that size will buy a lot of skis.

[steve]

I read that it is important to manage the property yourself for a couple of years before hiring a property manager. it helps you choose the right manager, plus it saves you money when starting out, which is always nice.

made sense to me.

-steve

[TeleAl]

What country we in?

[freezorburn]

To be a landlord you need to be "totaly legal".

1) Who has landlording experience?
Me,10 years experiance.

2) Did you do it yourself, or did you just hire a property management company to do it?

FUCK "property management" totaly worthless.

3) Landlords insurance is mandatory, or at the very least, a good idea given the lawsuit happy society that is the US and A, right? How much does this shit run?

NO, Get personal Liability coverage Much better and cheeper. Get 1 million at least. grand or so a year.

4a) Assuming you manage it yourself and get paid cash in hand by the tennants- you declare this on your tax return right? Like an honor system? *cough cough*

Honor system but Declare it! If a tenant goes bad you need to be totaly legal to get them out "DON"T FUCK AROUND, FOLLOW THE LAW"

4b) If you get a property manager to do it for you, do they report your earnings to, say someone who might be interested in how much you make in a year? *cough cough*

SEE ANSWER #2

5) Can you still claim the mortgage deduction as part of your tax return for rental properties?

YES

Thanks in advance.

Your welcome