All Forum Posts by: Frank Jones

Is there any software or website that can identify Transitioning neighborhoods?

I want to know which neighborhoods in my city are starting to receive investment from LLCs and cash buyers with property values increasing more rapidly than other neighborhoods.

Thanks for the suggested reading. I will start working through this information, and I'm​ looking for more suggestions. I have an appointment with a CPA at the end of the month and want to be ready for that conversation. since they are busy with tax season right now, I figure this forum is a good place to educate myself before the chat with the CPA. Already, I learned about a Solo 401k which allows me to put up to $53,000 into tax deferred retirement savings. I can then lend myself up to $50,000 from that account at prime interest for five years without any fees. This seems like an option for what I am trying to do. I will discuss it further with the CPA at the end of the month. Keep the ideas coming because I have a lot to learn in this area.

@Steven Hamilton II, I have continued my research and stumbled upon something called a Checkbook Control Solo 401k. https://www.google.com/amp/s/www.forbes.com/sites/greatspeculations/2011/07/15/think-about-going-solo-in-your-401k/amp/ https://en.m.wikipedia.org/wiki/Solo_401(k) It seems that as a sole proprietor without any employees, I can create a Solo 401k. This allows me to contribute $53,000 per year and I have the option for this to be before or after taxes. Then, if I setup the account to give me Checkbook Control, I can direct that money into investments of my choice - including real estate. What am I missing here? Would this structure not reduce my taxable income by $53k while allowing me to invest $53k into real estate this year? Thanks for your feedback and advice on this.

@Steven Hamilton II Thanks for pointing out my error, and better still for explaining how that depreciation works. Now I just need to figure out a different strategy.

Hello everyone,

I have been listening to the Bigger Pockets podcast for the last few months with the intention to begin investing in real estate within the next 3-5 years. Now, I find my business is growing more rapidly than projected and I'm looking for ways to reduce my tax liability. If you know of any good articles for me to read, please share the link. Ideally, I'm looking for a way to make real estate purchases count as business expenses - but my primary business is in marketing.

Thanks in advance for all the great information I know I will find in this forum.

I know that these suggestions will very from place to place, and I have an appointment with an accountant scheduled for later this month.

That being said, I'd like to know if any of you have heard of something like what I am considering.

I have a Schedule C business (declared as personal income not an LLC or other corporate structure) which is projected to have a good year. Before I have to pay a lot of taxes next year, I'm looking to make a change in the business structure.

What I want to do is take revenue from this profitable business and put it into a real estate investment. This would transform profits into a business expense before I have to count it as income.

Basically, have you heard of anyone taking pre-tax revenue from one business and investing it in their real estate business without paying income tax on the transaction? If so, can you point me to any description of how they did this, or share their example here?

Thanks in advance for your help.