Hello,
I am a single owner of a LLC. I bought a real esate property in
2007. I have not made any income from this property, but have spent quite a bit of money fixing it up. I have reported on my tax form so far the interest I have paid to the bank for the loan I took out to buy this property. Do I need to file a schedule e also to report the money I have spent on this property? Also, are their other forms that need to filled out per my circumstance?Thanks.
Find a CPA or Enrolled Agent to help you with your tax return this year. That way you will get started off on the right foot!
Katie in San Diego
Katie, would you capitalize the interest, inasmuch as the property is not yet being rented? grin
ChEAr$, Harlan Lunsford, EA n LA
The OP describes investment interest which isn't deductible unless he/ she has net investment income.
so, with no net investment income, is it capitalized or carried forward?
If property is not yet placed in service, I would think that all costs need to be capitalized.
...Katie's comment is right on target & is probably the most appropriate response to about 95% of the postings here
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-----> real address on hobokeni or hobokenx
so then, we might as well just shut this group down. Good thinking.
LOL! And so would I, as intimated by the rhetorical question I "posed".
ChEAr$, Harlan
I think that comment is way off base. There are many situations that can't be adequately dealt with here. Would you shut down the group because we can't give everyone in the world all the free tax-related services that they want?
Stu
are 95% of the situations presented here not worth responding to? There is nothing more frustrating that posting a question and getting a response "go hire an expert to help you". That, of course, can always be advised, but isn't much help with the issue posed. The better responses I have seen deal with the issue posed, and perhaps advise hiring a pro to delve into the matter further and make sure the actual tax returns follow the answers given to the issue posed.
We always hear advice to make sure you hire a knowledgeable expert. How can you know that the expert you are talking with is knowledgeable unless you yourself become at least somewhat knowledgeable? A non-expert may not be able to fully understand some of the responses given here (or at least sought here), but they have a decent chance of seeing if their expert to be hired sounds like he or she is saying the same types of things.
I've seen almost no responses that simply say that and no more. Normally a response gives good general information, but then goes on to say that the OP's situation cannot be definitively determined here for various reasons. I don't think we need to restrict posts to all one way or all the other.
That's the normal kind of response I've seen here. And Katie is one of the best in terms of helpful and accurate responses.
In this case, though, OP is clearly in a situation that is too complex to deal with here.
Those are different kinds of knowledge. You find an expert by looking around, talking to people and getting recommendations. Knowing a bit might help when interviewing people. But if your question is too big, you need to spend the time to learn what you need to learn.
Stu
Well, thanks for the kudos, Stu. Actually, I confess I was being lazy when I responded to this one. Shoulda kept my trap shut . The point of the exercise here, IMO, is to give questioners at least a clue as to the nature of thei issue or what the possibilities are. But then we often have to send them off to an adviser who can have access to all of the relevant facts and circumstances, which we can't do here.
Mea culpa, anyway.
Katie
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