Could you please help clarify this question:
Eric lives in a home with a six-plex located at the rear of the property. On his tax returns, he allocates 60% of all expenses to the apartment building. He is getting really tired of dealing with 6 tenants, and is seriously thinking of moving in with his girlfriend. Eric inherited the property from his parents two years ago. It was worth $600,000 then, and $1 million now. What are Eric's options?
In the above situation Eric have many choices but according to me the following option will be appropriate for him.
1. The option that Eric can choose that is he can easily sold his house to anyone for $1 million but it will take some time for the sale of house.
2. The second is that Eric will definitely move to his girlfriend house but 6 tenant will not easily handled.
Now Eric is confused because 60% allocation of expenses in his tax returns will helps in reduction of tax.
According to the demand of Situation Eric will choose second option because in second option Eric has two benefits that is 60% deduction and second every month rental income i.e., called passive income.
Could you please help clarify this question: Eric lives in a home with a six-plex located...
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