Since property values are down I would not be able to realize any profit from the sale of my home.  I've wanted to move south out of Ohio but it's just not in the cards.  I'm pretty much stuck in Ohio though I do love my home.  It's a simple little place on an acre of sparse woods.  I've remodelled to suit my tastes as well as make it elderly proof.

The house next door was, at one time, up for sheriff sale and I stressed as to who I might have for neighbors.  Nothing against truckers but I had nightmares of a big rig idling all night long.  Nothing against rednecks (my family is from West (by-God) Virginia), but the thought of coon dogs howling all night long is in itself a nightmare.  I can be an excellent, thoughtful, helpful neighbor but I can also but one nasty bastard to an inconsiderate neighbor.

I missed the sheriff sale and fortunately the new owner rented it out to a damn nice fellow; an older Christian gentleman.  He has some health issues and so I've helped him out quite a bit over the past couple of years.   Well, the house was going up for sale again.  The same old fears started to resurface.  And, I was worried about what was going to happen to the old guy should he be forced to move.

Long story short; I'm buying the house next door.  I've decided that my retirement funds aren't realizing me much at all and it probably wouldn't hurt to use it to purchase realestate instead of spending it on things with a shelf-life, things I don't really need.  I got a decent deal on the property, not the best but it adds another acre to my own.  And, I'll be able to lower the old guys rent.  I'm not looking to increase my monthly income, I just want to own the property.  Anyway, my question for anyone who might have the experience:

What advice can you give me to offset taxes on any income I may realize from the property, other than usual expenses for upkeep?  Any tips would certainly be appreciated.  Thanks

Peace

Jimmy, congrats on taking care of the ol man....shows a lot character! I've owned quite a bit of RE down here in N.O. and I've always 'created' expenses - i.e. new hot water htr, new carpet, new appliances,new roof and so on...they were required as many of the props were in disrepair~
The expense you incur will be offset (as you itemized) from you personal income tax (1040) due on April 15th.
Dave ~

I'm with the Big Dog here. If you show legitimate expenditure, on "fixin up the place" and you do so fairly quickly, you can substantially lower your tax burden. And if you were to "incorporate" the property under a "rental proprietorship", you may totally offset ANY tax requirements. Talk to a local CPA, it may cost you a couple bucks, but it'd be worth the savings, in the long run. Good Hunting.

Ride Free
Tweek

Unfortunately the home inspection was terrible. I ain't buyin' the place unless the seller drops 15 grand.

Peace

I am a land lord and i hate it. Save every last reciept you spend on that place, everything adds up so even cleaning supplies. In NY i can not clam my time for any work i do. My brother helps me out alot so i get reciepts from him.