All Forum Posts by: Tyler Smiarowski

Good job. How many units? Is it a converted multi? 

25% pass thru does not apply to services. (Cpas, lawyers, doctors,etc).

The bill would make rental income subject to SE tax. Page 51 of the bill. It's strikes the 1st paragraph of 1402 (a) whichs excludes rental income from being subject to se tax. I think this is the biggest cause of concern for re investors.  

@Carl fisher I just added a few people to my comment to get a response...was commenting on the rental portion and not iras.

@Matt Leonard The biggest issue I believe in this bill is making rental income subject to Self Employment tax. This would be biggest change for landlords and a tax increase making rental income subject to an additional 15.3% on top of the federal rate. See article below and my prior post regarding what page on the bill this references. @Connor Dunham @Carl Fischer

https://www.eidebailly.com/insights/articles/2017/...

Have not found anything else on this but it seems even if it only applies to taxpayers who materially participate in their rental activity this is a pretty significant change. 

I posted a topic on this but thought I would reply here as well...

Discussed this in a CPE class today. If you go to page 51 of the tax reform bill. ( just google it and you should find it..its 429 pages). On line 14 where it states "Application of Rental Income"...it says section 1402(a) is amended by striking paragraph 1. If you pull up section 1402(a) paragraph 1 this excludes rental real estate income from being subject to SE tax. So by "striking" or elimating this paragraph it would indicate rental real estate income would be made subject to SE tax under the tax reform bill.

Thoughts?

Discussed this in a CPE class today. If you go to page 51 of the tax reform bill. ( just google it and you should find it..its 429 pages). On line 14 where it states "Application of Rental Income"...it says section 1402(a) is amended by striking paragraph 1. If you pull up section 1402(a) paragraph 1 this excludes rental real estate income from  being subject to SE tax. So by "striking" or elimating this paragraph it would indicate rental real estate income would be made subject to SE tax under the tax reform bill.

Thoughts?

If considering selling it's always important to sit down with who prepares your taxes to do a projection on the sale to see what the tax consequences are. This can help to determine if a 1031 makes sense.  When selling..all the depreciation that has been taken on the property is taxed when the property is sold. This can catch people off guard during tax time if not properly accounted for. Most people think that if the property was bought for 100K..then they sell it 5 years later for 100k...there is no taxed owed...but there is due to the amount of depreciation that was taken while the property was owned. 

I understand that but sometimes I would like to see people question why some of these departments exist and if the gov't should actually be involved.