All Forum Posts by: Ahad Ali

Hello,

If you are willing to work remotely, there are lot of CPA firms in NYC area who are specialized in real estate section. Just keep in mind real estate loss can be used to offset your ordinary income. 

Generally, you would depreciate it over 27.5 years since it is an Airbnb platform. And there is passive income loss limitation of $25k per year and the excess loss can be carried over for the next year. It will start to phase out when your income reaches $150k.

I would suggest you discuss with a CPA who specializes in real estate and have a more in-depth conversation to give you a better understanding of your situation. You will be able to write off a lot of expenses which will help you out eventually with your taxes.

Hi @Zachary Bellinghausen

There are a lot of CPAs on this forum that should be able to assist you on how to get started on this and move forward appropriately and I highly suggest you reach out to them. You may also want to consider reaching out to a Financial Advisor as well to get additional input and information.

The key focus here will be properly reporting the roll-over from the 401K into your Self-Directed 401K and making sure you are able to do so without any hiccups. Most CPAs should be able to assist you with setting up entities that would best benefit you after going over your specific details.

Hello,

This is doable as from a tax standpoint the owner is a separate entity from the LLC whom he will be renting the property he personally owns out to. This will not be reported on the Schedule C but rather on the Schedule E as it is primarily passive rental income. Having rental properties be reported on the Schedule C has a multitude of requirements to prove the active involvement and treatment of the property as a business, similar to how hotels operate.

The other information is true as the owner will be able to claim the rents claimed from the LLC as well as the expenses incurred such as mortgage interest, taxes, insurance, repairs, depreciation etc. on the Schedule E. Likewise, the LLC will be able to claim the rent as an expense to reduce its overall net profit.

It is highly suggested to speak to CPAs who are experienced on these matters directly so you can go over the information in detail which is not advised to be done on an online forum. There are some variables that need to be considered and accounted for to make sure this option will actually be beneficial and not detrimental.

In the beginning you may not need to keep a PM (helps you save some cost in the short run). Do a proper screening of the potential tenants and go from there. Later on, if you get busy and can't seem to manage your rental property, then you can hire a PM. If your first tenant in headache free and you build the trust over time, then you may not need a PM also.

Hope this helps and goodluck.

Hi, 

If you are willing to work remotely, there are lot of CPA firms in NYC area who are specialized in real estate section. Just keep in mind real estate loss can be used to offset your ordinary income.  

Hi Julie,

Passive loss can be used to offset ordinary income if your income is under threshold. If you are open to work remotely, there are lot of CPA firms in NYC area who are specialized in this sector.

 Hi Jordan,

Two properties sounds like a landlord, not small time at all! I am curious about your screening process and whether you do the screening yourself or you use a service/company to assist with the process? 

Hi Jon,

Glad to meet you! 

I am located in the Bronx where I own a small multi-family unit myself. I am looking to expand my portfolio, possibly in the Brooklyn area. Have you considered Bronx investing? I am curious about the neighborhoods you specified in Brooklyn and what makes these areas attractive over other spots? 

Hi Bob,

As others have mentioned, it is best to either form a new LLC in any state you have income generating property in or register an out-of-state LLC as a foreign entity in those states. You would definitely want to consult an attorney or CPA (or both) in the state where the properties are located for a better understanding but from a purely tax perspective, any state that imposes income taxes most likely would require you to report the income from a property in the state they operate in on an accompanying tax return.

Additionally, if and when you decide to sell or exchange any property in a state, most likely there will be closing documents issued by the lender or agents involved in the sale, including a 1099-S which will be reported to the IRS and will likely list the address of the property involved and may trigger a capital gains tax. Many states also require such forms to be submitted to their taxing authorities which would mean the sale would be a matter of tax record and without a corresponding tax return registering the sale, this may result in an inquiry by the agency involved, leading to a lookback into prior year reporting.