All Forum Posts by: Dominick Austria

 Thanks Dan!

Amy I’d be happy to help. 

 This is not 100% true. You need to have capital gains from the disposition of an asset to get the benefits of this. Simply investing in the zone will not get you the benefits. Please talk to a CPA before utilizing this strategy. 

If most of the CPAs quoted you $2,000 it sounds like you may have a lot more going on then just 2 SFR. Do you have some other Schedule K-1s from a partnership or S Corp? Maybe a few brokerage accounts? Each year the IRS is pushing more and more onto tax preparers. For example, this last year you had to disclose your basis in a flow through entity on your tax return. A good CPA should be able to calculate and report this. But some preparers may not understand how basis works. Basis affects your gain once you sell. This is one of many examples of value added by a CPA.

Rentals are classified as passive unless you can prove you are active. Very hard to do unless you are a RE Pro. 

Assuming your rentals were a passive activity to you, the gain would be consider passive income in which your passive losses can be taken against it. Capital gains aren’t actually passive income it’s portfolio. But because this gain came from your passive activity its passive for PAL. In other words the gain from the sale of the rental would free up all of your PAL. You should be able to take passive losses against it. I’d have your CPA run through your facts to be sure though. 

There’s handfuls of information we would need to know before being able to answer your question. Are you flipping or hold and renting? Are all 4 putting in equal money? How do you want to split the profits? Is one person doing all of the work and getting a share of the profits? It’s a discuss to have with a tax professional. They will be able to educate you once they have all of the information.

 Just getting an ITIN doesn’t mean your taxes on your world wide income. You’ll only be taxed in US income as long as you stay within the guidelines to be a nonresident. If you stay too many days in the US or apply for residency you could potentially pay tax on your world wide income. Best advice. Seek a CPAs advice and work closely with them. This realm is too confusing to tackle alone. Focus on the things you know which is real estate. 

@Spencer Cornelia thanks for the update. Unfortunately I already have another commitment Sunday and can’t make it. 

Thanks @Spencer Cornelia I’m in! See you then. Looking forward to it. 

Hi Neisser. I'm in Vegas too. I haven't heard of any coming up. I'd be interested in attending one though.