Marina Parkin (Koontz & Parkin, CPAs) and Jackie Durham (Koontz & Associates, PL) discuss many of the complexities of owning a rental property. Watch to learn how to legally protect your properties and organize your expenses for an easier tax season.
2:16 Buying rental property.
2:57 Importance of legal protection when acquiring rental property. Forming an LLC for your properties.
6:00 Why you should not put a new property under an existing LLC.
11:12 Converting current home into rental property.
14:48 Tracking your new rental property expenses.
16:53 Short term rental legal: taxes and management companies.
19:47 Warning about property management agreements and commissions if you're selling a rental property.
22:37 Rental income and rental expenses.
28:54 List of typical rental expenses.
30:59 Depreciation of the cost of the rental property.
36:43 Improvements and repairs on rental properties.
43:11 Contracting work in LLC, not individual name.
46:13 Improvement or repair: replacing rental property flooring.
47:31 Other expenses: travel, phone, home office.
50:15 Value of your own time and labor is not deductible.
53:50 How long does it take to setup LLC for rental property?
54:54 Ownership of vacation property vs rental property.