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All Forum Posts by: Chris Gallick

Chris Gallick has started 5 posts and replied 14 times.

Post: VA company - Filam Reiva - review request

Chris GallickPosted
  • Santa Clara, CA
  • Posts 14
  • Votes 6

Has anyone used Filam Reiva for their VA? If so, how was your experience? Would you recommend, or would you go with a different company?

Hi @Julio Gonzalez

The only CPA's I've spoken with are via Turbo Tax. Unfortunately, they have been hit or miss. I would be happy to receive a recommendation. Thank you!

Hi @Hannah Joy

I wouldn't say that there's necessarily a way to 'plan' your deductions. Rather, you just want to make sure you include all relevant expenses, depreciation, or other 'losses' associated with your property in order to get the maximum tax benefit of owning a rental. There is bonus depreciation that can be considered, however, which could allow you to maximize your refund by claiming future depreciation of an asset in the current year. As found on usbank.com ...

"The rules allow Bonus Depreciation to 100% for all qualified purchases made between September 27, 2017 and January 1, 2023. Bonus Depreciation now ramps down to 80%, starting in 2023. Bonus depreciation will continue to ramp down for ensuing years: 60% for 2024, 40% for 2025, 20% for 2026, and 0% beginning in 2027." 

I believe you are correct in that Turbo Tax won't let you play around with entering the numbers until sometime early next year. I'm not sure when that date is, however. 

@Nicholas L.

I am interested in knowing the amount, or approximate amount, I might be able to receive back in taxes to plan my next REI move.

@Hannah Joy

I wasn't able to find a formula that determined the specific dollar amount for itemized deductions (as @Michael Plaks had stated). The only info I found was with regard to 'bonus depreciation.' According to the CPA I spoke with, for tax year 2023, one can claim 'bonus depreciation' for the renovation expenses if those transactions were made in the year 2023. For tax year 2023, the bonus depreciation is 80% (and will go down from there in future years) which means one can receive 80% of the cost of renovations back in the tax refund.

Incidentally, I find it unsatisfactory that the only way to know the exact dollar amount of my return is to actually file taxes. I'm curious how does the IRS determines this dollar amount. It seems rather clandestine and secretive as it is not readily available. 

Hello BP! I'm seeking input from a CPA or tax professional that might be able to help me regarding claiming expenses on an investment property. I'd like to know how much I can expect to receive back from taxes after claiming a number of expenses. Is there a formula? Is the actual amount received based on where one falls in the federal tax bracket? 

For example, if someone were to put $10K towards renovations, etc., how much of that $10K will that individual receive back from the government? I've not been able to find the specific formula in my research and am hopeful that someone within this great community can shed some light on this topic. 

Thank you in advance!

Post: How to get passed DTI

Chris GallickPosted
  • Santa Clara, CA
  • Posts 14
  • Votes 6

Thank you everyone for providing thoughtful responses! Truly appreciated.

Thank you @Eric Veronica ! This is exactly what I was trying to figure out.

Post: How to get passed DTI

Chris GallickPosted
  • Santa Clara, CA
  • Posts 14
  • Votes 6

I've listened to a number of BP Rookie ('regular') podcast episodes about how people with low income have been able to acquire properties. Many podcast guests state that they use conventional financing to purchase their properties. How does one do this given DTI restrictions? Can DTI be avoided by transferring properties to an LLC?

Thank you!

Post: property manager withholding some of my revenue

Chris GallickPosted
  • Santa Clara, CA
  • Posts 14
  • Votes 6

I appreciate the thoughtful replies. I reached out to my PM prior to posting here. I'm still awaiting a reply. In the past, it takes them a few days to reply to my inquiries, which I find bothersome. 

I've begun looking for other PM's in the SLC area just in case. I would appreciate any recommendations. 

Thank you!

Post: property manager withholding some of my revenue

Chris GallickPosted
  • Santa Clara, CA
  • Posts 14
  • Votes 6

Is there a valid reason why my property manager consistently withholds some of my revenue in addition to the agreed upon minimum account balance? Numbers: $400 min account balance. My current balance is $720 with my PM after the owner draw. Why would they do this?