All Forum Posts by: Jeff Nash

Check this out - https://www.biggerpockets.com/...

I believe there are one or 2 people on here that might be local to you. 

@Stanley J Black can help you and more details are needed to make an assessment.  

@Dominick Johnson I want to make sure I understand what you mean by financial advising as that can be a vague and broad term. Does your tax strategist hold various designations which might include being a CPA/CFP/EA/PFS Series 65, 7/63? Does the scope of your engagement include tax preparation, tax planning, investment advisory services, accounting services, preparing a financial plan and monitoring it periodically, etc? That amount you said you were charged is not rounded off so I am curious. When it comes to the services I outlined they are usually assessed in different ways such as a rate per hour, fixed fee per month/quarter based on time estimated collaborating with the client, financial resources that need to be managed and allocated (% of AUM/AUA), and overall complexity of the clients situation. Based on the example you provided which was really just specific to tax (and maybe bookkeeping) it seems like you got a low return without knowing the details. The compliance work (tax preparation and bookkeeping) obviously just has to be done and is a certain cost whereas strategizing/consulting/advising (whatever you want to call it) is an investment on your part and should produce some type of ROI or multiple of return on savings. We personally have segregated these services by different operating entities so that they are not commingled and it's more ala carte.

For tax purposes, you can handle the situation using a combination of 1031 and 121 as described.  @Whitney Nash can go into more depth and address the specifics of the 1031 rules.

@Bob Stevens i think you forgot “….and no feelings” - Gordon Gekko, Wall Street.  

This topic is relevant as I just had conversation with a CPA and his client yesterday with respect to setting up an LLC and making an S-election to save on self-employment taxes. This client was located in NJ and told by a consulting firm that he should employ this strategy. The issue is that NJ among other states require a natural person rather than an entity to be paid, unless the agent is a broker in which case there are also some stipulations and some additional costs of doing business. In any case it's an issue of assignment of income which is prohibited. I'm deviating a little from the original post but saw some the other commentary which is great and wanted to expand on it a bit.

I think it's great that you are asking for help with this and not trying to do it yourself if you don't have expertise with software and accounting.  Quality books are needed for both internal monitoring so you can make decisions and for external needs like preparing taxes and qualifying for loans.  My biggest challenge working with business owners is lack of quality books and records.  I do not offer this service directly but can help provide you with a few options if you have not already found a resource.  

Great commentary here and I think some analysis and number crunching is in order.  I am normally not big on paying off the mortgage prematurely because of the opportunity cost and ability to use the funds to generate alpha from other diversified options.  The margin loan can be a good option assuming you have a low cost provider and invest wisely.  I would work with someone or a team of people to help you understand the pros/cons of any number of directions you can go.

I agree with @Steve Vaughan as you probably want a domestic entity with respect to where the property or business is located.  There are foreign filing fees and other considerations when you are out of state. In Texas for example you have the Texas Franchise Tax report to file whether you have gross receipts or not.  

You also might want to consider bonus depreciation (80% this year).  You generally should work with someone that will analyze each scenario and see which one is more advantageous or preferable in light of your future expected use as noted by @Marc Howard.  Look up Topic 510, Business Use of Car and/or Publication 463, Travel, Entertainment, Gift and Car Expenses in you are curious and want to read more in depth, but like I said, some analysis with a tax professional should help solve this matter.