All Forum Posts by: Irving Franco

@Joseph Palmiero

So if I purchase a hotel with a minimum of 5% ownership that I manage, but do not work on site, and continue my current W-2, then in theory I would be able to use tax losses from depreciation of the hotel I own, to offset taxes paid from my W-2?

@Chris Seveney

I understand that the 10% penalty will happen, but I’m more interested in offsetting the federal and state income taxes. For example, if I withdraw $100k from my 401k I would be assessed a $10k penalty, and roughly $35k in income taxes. In theory, I would be able to offset the $35k in income taxes with some type of loss. So if I use $100k that I withdraw from my $401k to purchase a property, can I use cost segregation or other forms of “loss” to offset the $35k due in income taxes from the withdrawal.

I have worked in the hospitality (hotel) industry for the past 11 years. I am responsible for all hotel financial/accounting items. Does working in the hotel industry count as a real estate professional if I also manage my own airbnbs.

Do I need to be a certain percentage owner of the hotel I work for in order to be considered a real estate professional?

Is away to offset the income tax on a 401k withdrawal that will be used to purchase investment real estate. I know I can move the money into a self directed IRA and going that route, but I'm curious if you can take a 401k withdrawal and use other tax losses within the year to offset the income tax.

I live in California which has higher income taxes, I have a W-2 job and do not qualify as a real estate professional

@Charles Cooper. Thanks for the reply.  

I should have mentioned the ADU was built back in 1997 so my assumptions are they didn't require the separate meters. I have all the permits from the city so I know it was done correctly. I should have also mentioned the main house is 4 bed 2 bath, vs the ADU is 2 bed 1 bath. I'm getting ready to rent out the bigger unit as well, but I am trying to figure out the best way to prepare the lease so I do not have to pay for any of the utilities and have the renters pay for them directly.

I purchased a home in Lawndale, California 90260, a couple months back. It already has a fully permitted ADU attached to the back of the house. It does not have a separate meter for gas, electricity, or water. I inherited the tenant living in the ADU and part their rent included all of the utilities plus Internet because the ADU does not have its own address and the cable company does not recognize the main house and ADU as a separate address. The questions that I have are:

Has anyone found a way to get the cable company to recognize 2 addresses so I can have the tenant's pay their own bills?

Has anyone used any utility splitting meters/devices to help split the utilities?

Has anyone gone through the process (in Lawndale) to give their ADU their own address?