Questions to ask.

[Daniel Baker]

Hi everyone! 

Looking to hire a professional to help with my taxes this year, i've always done them myself but fear I'm leaving money on the table. I have a w-2 income and own three properties, all long term rentals, that I've had for a few years. Are there any quesitons that I should be sure to ask or anything that maybe you wished you had asked about sooner? Look forward to the discussion.

[Mia Taylor]

Hi Daniel,

Here are a few questions that can go along with a few strategies:

1. Depreciation Strategies: Am I maximizing depreciation deductions, and should I consider a cost segregation study to accelerate depreciation?

2. Passive Activity Losses: Are there ways to offset my W-2 income with rental losses, or do I need to qualify as a real estate professional for that to work?

3. Mortgage Interest Deductions: Are there any limitations on how much mortgage interest I can deduct for my rental properties?

4. Short-Term vs. Long-Term Rental Rules: Even though my properties are long-term rentals, are there any tax benefits I might be missing if I occasionally rent them short-term?

5. Self-Employment Opportunities: Would it make sense to start a side business related to my rental properties (such as property management) to access more deductions?

6. Retirement Account Contributions: Given my W-2 income and rental income, what are the best retirement accounts to contribute to for tax efficiency?

7. Legal Entity Considerations: Should I hold my rental properties in an LLC or trust for liability and tax benefits, or does it not make a difference for me?

8. 1031 Exchanges: If I sell one of my properties, what steps do I need to take to defer taxes using a 1031 exchange?

9. Estate & Inheritance Planning: What should I do now to minimize taxes for my heirs if I plan to pass down these rental properties?

10. Capital Gains & Exit Strategies: If I decide to sell in the future, what are the best ways to reduce capital gains taxes?

I hope this helps.

Mia