All Forum Posts by: Caleb Genry

@Montez Blackburn yes, it is a write off for you. You can do (1 - your tax rate) x 90 = your real monthly cost for their services.

That is pretty cheap. Most will not even do just the bookkeeping for that cheap. It is definitely a good price, but you also get what you pay for. It could be worth trying, but you may want another accountant to take a quick look after a few months to verify everything is being done correctly.

@Chris Parker it does make sense, however I usually recommend clients hold their flip properties in the LLC taxes as an S-Corp, not standard LLC in order to avoid self employment taxes.

 Depreciation is still 27.5 years. Some of the closing costs do need to be capitalized into the overall building costs, however some of the closing costs go to an intangible asset called loan costs which are then amortized over the life of the loan. There are also some items in closing costs that can be expensed immediately. The closing statement is one of the items I see miscategorized most often.

@Wesley Harper what Todd said is correct.

Also for flippers, the projects are usually reported as inventory on the tax returns, so you could create inventory-project a, inventory-project b, etc. accounts.

I use Quickbooks Online for my myself and all of my clients. It is very easy to manage.

@Daniel Sabato ok perfect. I just wanted to make sure you were at least tracking things like travel, meals, etc. on your own. I have seen a lot of missed deductions in the past.

@Daniel Sabato as long as it has a breakdown of the payment amount for each service, then yes it should be sufficient. What do you do with receipts that don't run through your property manager, and how do you add those amounts to your bookkeeping before your taxes?

@Michael McIntosh I think ultimately it is up to you. I have a separate one for each so that I can get a true balance sheet for each property. You will need to keep a separate income statement for each property though, so do whatever is easiest for you.

@Vincent Silva It's nice to have options! I would say be flexible when you get to the end when deciding what you want to do. However, you absolutely need to factor in realtor fees and closing costs when selling as well as tax implications. Those will take from the extra $50k you make on the flip.