If you don't mind being on hold for a really long time, and pushing buttons that may never get you to a human, the IRS number is 1-800-TAX-1040 (800-829-1040). Good luck getting a human.
Oh I remember now. I have called this number for another issue and it took 2 hours for a human. And she just asked me to read the publication.
Most questions relating to rentals I can answer.
Thank you so much! Your abundant experience is definitely a huge asset to people like me. If I bother you please let me know! I just afraid to ask you too much and use your time too much. Regarding the CPA, you made a good point. I am in AR where income is heavily taxed and I may ask around for a local CPA first. Do you know how much do they usually charge? I know it is different and so many moving parts. Just want an idea about the consulting cost.
Additionally, in the tax year you sell you are required to recapture all depreciation taken on the property and pay taxes on it in that year of recapture.
This brings my deep concerns about the depreciation. I am always afraid to claim depreciation on my tax return. Although I did, I am so worried when I sell my property it will come back and bite me. It just like an accumulated risk to me. I can't help to think about 10 years from now the majority of my houses are depreciated (I do 15 years loan) and the value of the houses goes up over time. When I quit being a landlord(not that I would, just saying) and sell these houses, I will suddenly have tens of thousands of income to pay taxes on.
About the cash-out money, I thought about it since you told me about the traceability is "EVERYTHING". What if I open a new saving/checking account and put the money there. I won't use that account to do anything except buying houses in the future. Do you think that's a good idea?
