All Forum Posts by: Ahad Ali

Hello @Mark Delosreyes

This would depend on quite a few variables such as your income, activity/involvement, rental income and expenses etc.

Increasing your depreciation can be beneficial when you have substantial income or profit and your able to utilize the increased deduction. If you do not meet the requirements to take advantage of this or do not have substantial income to offset then this may not be the best course of action to take for you.

I would suggest to speak with a CPA in detail regarding this to come up with a projection or estimation of whether this will be beneficial for you.

Hello @Trent Reeve

The other posts explain very well how to start out with a STR and I would like to add to what @Alex Pino mentioned. While an LLC is not required for a single property (or multiple for that matter) it is beneficial to further reduce liability. This may depend of course on location and other details so that is up to your disclosure or with further information and discussion with a CPA.

If you do set up an LLC, you can set it up in a separate state but may be required to file taxes to that state respectively. You may also be required to have a registered agent for the LLC if it is a different state so do bare that in mind and do look into it before proceeding.

You would not need a tax ID for the property if you are not getting an LLC as you as the individual would be the owner of it.

Regardless of whether you go with an LLC or not, I highly agree with having a separate bank account for the property specifically to keep your transactions organized. Having a mixed account can lead to a lot of confusions in finance managing. A separate bank account also helps with when it comes to filing the taxes.

Hi Sean 

Many CPA firms help their Clients with Gift tax. Most of the gift is exempted  up to ($11.7 million). 

@Kirsten Crotts  there are many CPA firms with specialized on real estate tax who help their clients remotely. If you open to work remotely, you will find  lot  of them online. Having Profit and Loss Statement makes life easy and stress free for many taxpayers. so before talk with any CPA , make sure your book is ready or  if you do not have P & L ,ask them if they can help you to do your bookkeeping. 

Hi @Heather Whittaker , Keep book up to date is reduce stress  during the tax season.  You can do it yourself if you feel comfortable to do it. Otherwise, there are some  firms help  people like both you  bookkeeping &  tax  services. I would like to say if you have more than one rental properties and you do not want any stress during the tax season, it is worthy having a firm. 

Hi Nicholas,

I would recommend you to get a CPA who is also an investor and can relate to you. You can try looking for someone within your state or find someone from a different state. There are a lot of firms who provide good remote service.

Hi Heather,

You can do the bookkeeping yourself if the expenses are minimal. There are some CPAs who may offer bookkeeping services along with tax preparation. Or if you would like to keep things organized, I would recommend using Quickbooks

Hi Fernando,

You may look into CPA firms outside of your state. There are plenty of remote firms which can provide you with the service.

Hello,

There are plenty of experienced CPA on this forum who may be able to help you, either remotely or in person. I would recommend to speak to multiple CPA before proceeding with one.

It may help if you provide more information about what you need assistance with.

 This answer hits the nail on the head.

Mainly the rule that you must meet BOTH requirements.