All Forum Posts by: Armand Farr

I have worked with many CPAs. I've had very few that I'd consider great.

@Ashish Acharya is my go-to guy. Super stellar, an investor himself, and most importantly, practical.

I'm self-managing a few of my investments in the past. I'd like to have a VA help with some of these basic things:

- Be the first point of contact for any maintenance requests
- Anything under $500 - call our handyman and get it done
- Anything above $500 - loop me in

She would NOT partake in any of the leasing / touring of the property. Literally just maintenance requests and making sure the autopay comes in.

That said, is it legal to have a VA do these activities without a license? She is on 1099, not W-2.

If it matters - our properties are in Utah and Texas.

@Ashish Acharya - thanks for this. Do you mean report all the income on the LLC return or the first partnership? (we'd be holding it in the LLC moving forward)

We're looking at buying a property, then transferring it into an LLC after rehabbing it and refinancing it (normal banks won't loan to the LLC)

Would this result in us having to file both a partnership tax return when it was in our names AND an LLC tax return for when we transferred it?

Just went through a nightmare where we had 3 properties and 3 partnership agreements to file our taxes on because they were in separate entities.

We wanted to consolidate them in 1 LLC for simplicity - the problem is each property has a different equity split

- Property A: 4 Partners
- Property B: 3 Partners

Would this be an issue for tax purposes? 

(Disclaimer: I'm OKAY with the liability of 2 properties in 1 entity. I'm more wondering if this is possible from a tax standpoint to divide up ownership of multiple properties within a single entity)

@Kevin Wood really appreciate the help on this. Just to clarify, for the ones we hold individually, can we just report these via a schedule E and forego the partnership return?

@Kevin Wood agreed moving forward we'd like to report through the LLC.

For the ones we hold individually, NOLO says we can just report these via a schedule E and forego the partnership return. Any perspective on this?

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https://www.nolo.com/legal-encyclopedia/filing-your-taxes-when-youre-landlord.html

Two or More Co-Owners

If you own the property with one or more co-owners, each co-tenant reports his or her share of the income and deductions from the rental property on his or her own tax return, filing Schedule E. Each owner’s share is based on his or her ownership interest (which should be listed on the property deed). Say, for example, that you take title as a tenant in common with your brother, and you own a 60% interest in the property and your brother 40%. Your brother would list his 40% share of the income and deductions from the co-owned rental house on his Schedule E and pay tax on that amount. You would list the other 60% on your own Schedule E.

@Dan Schwartz that's good news. Here's the blurb on properties owned individually. Can anyone confirm?

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Two or More Co-Owners

If you own the property with one or more co-owners, each co-tenant reports his or her share of the income and deductions from the rental property on his or her own tax return, filing Schedule E. Each owner’s share is based on his or her ownership interest (which should be listed on the property deed). Say, for example, that you take title as a tenant in common with your brother, and you own a 60% interest in the property and your brother 40%. Your brother would list his 40% share of the income and deductions from the co-owned rental house on his Schedule E and pay tax on that amount. You would list the other 60% on your own Schedule E.

@Dan SchwartzThe properties A and B are not held in a partnership entity. We are all on title directly. Would we still have to file a partnership return?

@David M. this is helpful - the first property is not held in a partnership entity. We are all on title. 

Does that mean we could just report the % ownership via a schedule E or would we have to file a partnership return still?