Hi Mark and Mat,
I just discovered your podcasts yesterday on YouTube and found them very informative and interesting (love the humor!). Big fan now!
My husband and I own multiple single family rental properties in PA. We both retired in June this year and spent a lot of time renovating our properties by ourselves in between tenants. My question is, how do we capture our labor costs for tax purposes, such as installing new flooring or painting some rooms? For years we only report the costs of materials.
Recently I heard the term cost segregation often. Our properties are all around 250K each (purchase price) and three of them were bought between 2018-2020. Is it worth it to do the cost seg for 2022 taxes as we now qualify for real estate professional status but still have the last two W2s (over 200k)?
I am looking forward to hearing your thoughts. Thank you very much!
Happy Holidays to you and your family!
Linda