Property

A good IRR (Internal Rate of Return) for rental property typically ranges from 8% to 12%. This percentage reflects a solid balance between risk and return for most investors. Understanding…

Yes, you can go to jail for damaging rental property if the damage is intentional and considered criminal vandalism or destruction of property. The severity of the penalty depends on…

Yes, you can qualify for Medicaid even if you own rental property. The eligibility depends on your income, the property’s value, and state regulations. Understanding Medicaid eligibility entails considering assets…

Yes, rental property losses can offset ordinary income, but there are limitations. The IRS rules allow up to a $25,000 passive activity loss to offset ordinary income if you actively…

You can use a rental property for personal use for a maximum of 14 days or 10% of rented days per year, whichever is less. Renting out a property offers…

Closing costs on rental property are typically amortized over the asset’s useful life, which is generally 27.5 years for residential property. The IRS allows investors to spread out the expense…

Rental property is typically classified as Section 1250 property. It’s not Section 1231 property due to its specific use in a trade or business as depreciable real estate. Understanding the…

Rental property can be a source of passive income, but it often requires some active involvement. Managing tenants and maintenance are common tasks for landlords. Rental properties have become a…

The best flooring for rental property is typically durable luxury vinyl or tile. These materials withstand tenant wear and tear while offering a modern aesthetic. Selecting the right flooring for…

When a rental property is fully depreciated, a property owner can no longer claim depreciation deductions on their tax return. The property’s cost basis for calculating capital gains is reduced…

Yes, you can own rental property while on Social Security Disability. SSA does not prohibit property investment. Understanding the interplay between asset ownership and Social Security Disability benefits is crucial…

Rental property income increases your total earnings, affecting your debt-to-income (DTI) ratio. Expenses related to the property, however, can also increase your debt obligations, impacting the same ratio. Managing a…

Insurance proceeds for rental property are generally not taxable. They must be used to repair or replace the damaged property. Understanding the tax implications of insurance proceeds for rental property…

A rental property is typically classified as Section 1250 property. Section 1245 property generally refers to depreciable personal property. Investing in real estate can be a powerful way to build…

Rental property income may be considered Qualified Business Income (QBI) if certain IRS rules are met. This classification allows for potential tax deductions under the Tax Cuts and Jobs Act….