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Updated over 2 years ago,
Needing a second opinion on my $51k tax obligation
I bought a house in Costa Rica, using partially money from my 401k through a covid distribution, which meant I escaped the 10% penalty but still am liable for income tax.
I'm 59, and took out approximately $200k. This house is on the beach and will serve as a retirement home as well as an airbnb rental.
Per my CPA's advice, I was able to deduct all my travel to Costa Rica, and hotels, since this house is within a corporation and I intend mostly at this point in my life to rent via airbnb the house, staying there for about 1 week every 90 days to work, do additional rehab/improvements and catch waves with my surfboard.
My CPA initially calculated a tax obligation of $51k, which I thought was too high. His explanation was that he "was not equipped" to take all my deductions that year, and instead amortized them over many years.
The next day I sent him an email offering to pay more for his time to sharpen his pencil. He then came up with an obligation of $24k, much better, but still not where I think it should be..........more like under $10k.
Does anyone have a referral to an professional CPA who deals with Real Estate and is aggressive in coming up with the lowest, legal tax obligation for their clients? I live in the south bay area of Los Angeles, near the ocean.