All Forum Posts by: James Rainwater

@Jason L. I'd strongly encourage you to use an attorney for the structuring & entity creation, not a CPA. Have a CPA bless the tax aspects of it, but an attorney should work with you to design & create it.

@Jacob Murry Good questions. I think it's a good idea to get some feedback here in the forums, but for what you are looking for, which is mostly asset protection, I'd find a good asset protection attorney in Missouri and run this past them for their opinion. I have great attorney relationships in many states, but not Missouri or Oklahoma. Most of the time, my clients opt to create the LLC in the state they are conducting business, but there are sometimes reasons to register in another state.

From a tax perspective, you can have the parent LLC as a partnership that wholly owns the child LLCs that actually own the properties. The child LLCs would be disregarded entities and you'd only have one tax return for the partnership/JV.

@Clayton Hucke, I agree with @Daniel Hyman , you are better off finding someone who specializes in real estate than someone who is local. 

Hey Nick, welcome! I'm in Bel Air also. Check out the Harford REIA chapter on Facebook & Meetup. It's a very strong group!

-James

It's all about the documentation. You can deduct the travel to and from (mileage or airfare), you can deduct lodging for the day of business as well as a day on either side for travel. You have to document what business is being conducted to get properly claim the business days versus the personal days. Meals on business or travel days would be deductible, but not on vacation days.

Agree with previous answers. You can 1031 the property, the gift doesn't preclude it from 1031. But, you need to plan with intermediary & CPA prior to the sale. I can't emphasize that enough, don't wait until after the sale or you'll lose the benefit of a 1031.

You could also take advantage of opportunity zone if the new property is in one. OZ has the potential to defer and possibly eliminate the gain if held long enough.