All Forum Posts by: Bernard Reisz

@Yonah Weiss So many! And, there's def overlap between our lists. 

@Daniel Hyman

@Brandon Hall

@Taylor L.

@Mark Pedroza

@Michael Plaks

Hit the tag limit, but definitely thankful for so many more incredible pros on BP. Thank you all!

@Kyle Moffat Here you go! https://www.passivewealthstrat...

@Michael H. Although you haven't provided figures, based on the median private loan size and interest rate it does seem the prices you were quoted are excessive.

Within the space, broadly, there are 3 types of providers - which are described and listed in order of pricing from lowest to highest:

1. Providers that are doing the rudimentary basics of getting an LLC/trust properly established and assisting w/ SDIRA custodian paperwork.
2. Providers that are providing varying degrees of additional value in the form of compliance, structure, strategy, and more. 
3. Providers that are just selling as much as they can, for the highest price they can get.

Self-evident that you're best off focusing on the 2 former categories and avoiding the latter. Within the first 2 groups you'll be getting honest service from honest providers. You get to select the level of service and value-add you'd like in a market that's relatively efficient.

As an FYI, podcast recording I did with @Taylor L. on this topic has a been a valuable resource to many. 

Taylor - Thanks for the tag! Glad to chime in and hope it's helpful.

@Yonah Weiss Thanks for the mention! You can always be counted upon to indicate both when cost seg WILL and WON'T add value. Kudos!

@Brad Hales To understand the answer to question it's important to understand both cost seg and retirement account taxation. 

Cost seg is simply the art and science of teasing out the individual depreciable components of a multi-component asset. No more, no less. In other words, it's does not represent special tax treatment that an account has to qualify for. So, every taxpayer can use it, so long as they have use for the additional deductions. 

Retirement accounts are taxpayers, just like individuals. They just have special treatment exempting them from certain chapters of the tax code and subjecting them to others.

At the risk of stating the obvious, you and your retirement accounts are all separate taxpayers.

If you invest in a syndication that uses leverage using a retirement account, it will receive a K1reflecting income/loss just like any other investor. Hopefully (but not so likely), Box 20 will provide the info needed for UBIT calculations and filing. 

@Taylor L. Honored by the mention! 

A great & popular resource is the podcast episode you hosted. 

@Eric Parrow 

Following are some helpful tips, but ultimately you're going to have to find a tax advisor.

- Long-term real estate holds should not be in an S-corp. That is one of the few rules that have almost no exceptions.

- Having diverse streams of income does not disqualify anyone from having a 401k/QRP

- 401k plan loans have rules and there's case law addressing appropriate interest rates. There is latitude, but there are rules and guidelines.

Can't be emphasized enough that it's best to get started with straight-shooting advisors & service-providers from the get-go. Some missteps - but not all - can be rectified.

Here's some helpful perspective, gleaned from experiences in many areas of tax & financial, without addressing the specific company and trademark that are being discussed.

Establishing a 401k/QRP for someone that doesn't qualify can entail tax risks that greatly outweigh any purported benefits of 401k/QRP. Any provider that promotes a specific course of action w/o informing you of the risks presents multiple issues:

1) Such a company is not focused on you; they are focused solely on your credit card.

2) 401k, QRP, SDIRA, LLCs, tax, asset protection, etc. are areas of complexity and you can't possibly identify every risky tax position and protect yourself. The best you can do is find a provider that aims to inform you of any-and-all pros, cons, & risks.

3) Whenever the IRS does start targeting abusers, you don't want to be riding on the leaky ship with the big bullseye on it.

The upshot of all this is that for anything tax related, find someone that's focusing on you and trying to help - not someone promoting a one-size-fits-all approach.

@Raj Kapur Loaded question! 

Short answer: Cost seg deductions from real estate rental assets are subject to Passive Activity Loss Limitations. Must you be a Real Estate Professional (for tax purposes) to benefit? Not necessarily, but very likely that you do; if your income is between 100k-150k and you "actively participate," you may be able to deduct up to 25k. 

@Marlen Weber I actually discussed many of these topics on Best Ever Real Estate Show! :)