All Forum Posts by: Basit Siddiqi

My thought process is that you are ultimately responsible for all the numbers being vetted to you.

You are doing a good job confirming all the numbers.

Everyone else wants you to close as fast as possible becuase they likely get a bonus / commission for closing.

Best of luck to you!

Your gain may be more than just the $15,000 increase in price since you did the cost segregation study.

The cost segregation study reduced your basis when you applied it 2 years ago. Therefore, you may have a sizable gain without doing a 1031.

Discuss with your accountant what the tax ramifications are with and without a 1031 exchange.

California does not recognize real estate professional status but they do recognize a STR being treated as active.

However, be mindful that California does not recognize bonus depreciation so your federal benefit will be higher than the state.

If this is your first flip with this person, put your attention on having everything operate properly.

I have seen so many poeple worry about the profits that will appear but they let everything slip.

Furthermore, why are you looking to partner?
If he is a contractor, why not buy the house personally and pay him a fee for his services.
If hes a realtor, why not just pay him a commission to buy the house.

Best of luck

Do you mean you are a US resident / citizen who invests in real estate abroad or are you a foreignor looking to invest in the US?

The first thing you want to do is have a discussion with a CPA to see if a cost segregation study is beneficial to you.

You don't want to pay for an item that you may potentially not get a benefit from.

Best of luck

There is no point in doing a 1031 exchange if you expect a loss from the transaction.
A 1031 is meant to defer your gain.

There are numbers which you can analyze and stress which is not easy to analyze.

It looks like you are stressed with this investment and I would sell.

I personally, however, would look to make the improvement for $10,000 to get one of the other units up and running.

Why would you want to file a partnership return instead of reporting it as is where it is owned as tenants in common.

If you file a partnership return and have someone else do it, you are likely looking at a $700 annual cost.

Reporting it as tenants in common means you report your share of the rental on your individual return and your partner reports his share on his individual return.

If you have active participation in the rentals and your income is below $150,000, you might be able to deduct some rental losses which could help you with your other income such as capital gains.

The good thing about Florida is that the state does not have a state income tax. This allows you to be more flexible in your search for an accountant.