All Forum Posts by: Alik Levin

Natalie,

Aprpecaite prompt response.

We actually run our business as layered LLC structure. Holding LLC is a regular income business providing management services to children LLCs that actually hold rental properties and are passive income.

We would purchase the car from holding LLC funds, would that make a difference?

So far we were reporting milage on holding LLCs, but with the new tax law looks like there is an opportunity to write it all off. Have you looked at the NOLO article?

Thank you

-Alik

Dear all,

I am readding NOLO's article referenced at the end about how new Tax Law changes 179 expensing.

Do I read it correctly that I can write off a car cost (new or used) 100% using 179 expensing?

My scenario:

- Me and my wife run our rentals ourselves, so it's a business, not investment.

- I buy a car this year that's used at least 50% for business purposes - rentals, showing as my wife is RE broker.

Please advise.

Thank you!

-Alik

https://www.nolo.com/legal-encyclopedia/section-17...

Correction. Brandon Hall is a star, not a start, CPA :)

AJ, that's exactly what I did and in 2017 (before new tax law) it was limited to $100K and I deducted its interest as line item on itemized deduction per advice of the CPA from TurboTax and that was inline with my understanding as well and in line with other star CPA's such as Tom Wheelwright and others. 

In 2018? I am not sure how it works and that was the very question I asked here. What's I am sure about is in 2018 I am going to use HELOC on primary for purchasing more rentals, no doubt. So good guidance is still in order. Brandon Hall, another start CPA and very active on BP is the one who's advice I would follow.

@Ashish Acharya, very resourceful. 

Help me get further clarity. 

Here is an example.

In 2017 I used $150K using personal residence HELOC as down payment for rental SFR. Since I used the funds for something other than personal residence I was able to deduct interest ($5K) accrued only on the first $100K of the borrowed $150K when I was filing my 2017 tax return few weeks back.

It's 2018 and I am doing the same, borrowing $150K from my personal residence HELOC to purchase rental property. How much would I be able to deduct when I will be filing my 2018 Tax Return in 2019?

Thank you!

Dear all,

What's the definitive answer - and preferably pointer to authoritative resource - regarding deductability of interest on HELOC with the passage of new Tax Law?

I do realize that HELOC interest deduction now only limited to personal residence home improvement expenses.

But is it also true using HELOC on real estate investment other than your personal residence is NOT deductible even for the first $100K borrowed?

Thank you

@Account Closed, thank you.

@Larry Fried, Thank you!

hi!

I am considering Las Vegas market for turnkey investing. If you are or know a turnkey rental operator in Las Vegas please let me know. Would love to chat. 

Thank you 

Dear all!

Looking for clarity on the situation where a Real Estate Agent licensed in one state but reports income as LLC in another state.

Key question, does the LLC need to register as a business in the state where Real Estate Agent licensed and operates?

My situation is this:

1. My wife and I started a Real Estate Investing Business with layered LLC's structure.
2. We operate in WA.
3. Our holding LLC in another state.
4. My wife became licensed Real Estate Agent in WA.
5. We intend to report her earnings as Holding LLC's income incorporated in the state other than WA.
6. My options as I see are:
   1. Report earnings to Holding LLC. Do I need to register it as a business in WA?
   2. Report earnings as sole proprietor. Not a huge fan at all.
   3. Incorporate child LLC in WA with Holding LLC as parent, and report earning to child LLC. I like it best but involves extra fees.

Thoughts?

Thank you!

-Alik