All Forum Posts by: John Malone

@Joseph Dasmerces you’ll likely be subject to forced withholding on profits for the NRA each quarter at 37%

@John Park depends on the operating agreement and special allocations. You certainly need to speak with a pro on this one

@Sothea K. Its unlikely. We works with tons of STR partnerships. Generally we'd recommend you flip flop properties for material participation.

The only way for 2 partners to both material participate would be 500+ hours EACH, which is unlikely/the IRS frankly won’t believe you!

@Jim Macris not a one sized fits all answer.

Technically speaking, a cost seg is moving from an “impermissible to permissible method of accounting”, so you could argue everyone must (but the IRS wouldnt fight you on this haha)

You should get a free ROI analysis then run it by your tax advisor

@Steven Ebers nope

@Lawrence Porter sounds about right! Bonus depreciation has no bearing on audits. Its part of the law. I hate when fellow tax advisors spread bonus depreciation fear…

@Pier Di Giorgio property grouping is based on the factors above. You need to form economic units. Once you group, you generally cant ungroup easily

@Salah Dajani yes its possible. The prior owner has nothing to do with it. Tax year begins on the day the propery meets the “in service” requirements.

Search back in this forum for FAQs on STR taxation!

@Pier Di Giorgio the grouping rules are as follows. Your groups should be able to run through these rules below;

Similarities and differences in types of trades or businesses;

The extent of common control;

The extent of common ownership;

Geographical location; and

Interdependence among the activities.

@Khandbari Rai as said above, depends on the date you purchased but either a change in accounting method or amended return. The usuability of losses is separate from simply qualifying for accelerated depreciation