All Forum Posts by: Joshua Thompson

 You might be able to treat it as business income if its substantial enough. It would be a great conversation to have with your tax advisor and financial advisor for the solo 401k. 

Depending on how much you'll like to contribute to this retirement account keep in mind the self employment taxes you may need to pay of 15.3% and age if contributing to a traditional not roth type retirement account.

I agree with the above based on your answer you most likely won't have issues in FL.

Hi Glenn, 

Typically hard money lenders depending on their situation and if they do it as a business treat the income as interest income or business income. Now there are a lot of factors that can come into play but I'm not completely sure what you're asking here. Are you the hard money lender? Do you have any other involvement other than providing funds? 

Hi Dominic,

I believe other forum users who don't practice tax can send you recommendations, I'm not 100% on this. However, you're more than welcome to reach out to a few accountants you see active in the forum to see if they are taking on new clients.

You can also use the BP feature Build Your Investing Team, which will allow you to find a tax professional on the platform. I believe this feature is completely free to you.

I hope this helped!

As you mentioned, you can take losses from stocks, but your capital losses can only exceed your capital gains by $3,000. Once you're at a $3,000 net loss, that amount can offset other income as an adjustment on your tax return. 

If you're asking about loss harvesting with real estate as the asset, you can typically only loss harvest when you sell an asset, unless you sell that property and it has a loss, keeping in mind depreciation, you won't be able to loss harvest.

Hi Larry and welcome to the forums! There are several knowledgeable tax professionals here that would be able to help you. I'm not sure of one in Milwaukee but I do know the majority of the tax professionals here run a remote office. I would recommend reaching out to a few you see active in the forums answering questions or us the "Build Your Investing Team" feature that should be at the top of the screen if you're on a computer.

Hi Rachel,

I know there are quite a few good tax professionals here in the forums, I would recommend reaching out to a handful to conduct a mutual interview. I'm sure some work with clients living abroad and I would inform of the following if you have them as they could impact your return: distributions from a foreign trust, foreign assets, foreign bank account max balance during the year, ownership of foreign companies, and foreign taxes paid among others not listed here.

This is a good question and to keep the answer short and simple; it is typically for the tax benefits. If you place your rental (STR, LTR, or MTR) into service by the end of the year you can begin to depreciate the property and write off certain expenses. If you expect a large tax balance this is why people rush to get it into services ASAP

Edit: To also add if the taxpayer qualifies for the "STR loophole" as some call it, even if they don't have much rental income, they could use the losses produced by that STR to offset other income.

I agree with what Benjamin mentioned and it's best to keep things simple. You're correct, you shouldn't comingle and you should create a separate business account for venmo, PayPal, banking etc. 

Most of our clients use one or two bank accounts for all revenue and expenses however there are a few that follow the profit-first method and like to use 5+ banking accounts. For most people, I do not recommend this. Your head is in the right place!

Hi Ignacio and welcome to the forums! I would recommend finding one of the many tax advisors that are active in the forums and conducting a mutual interview to see if it would be a good fit. You can also use the BP feature above "Build your investing Team" to connect with a tax professional. The biggest thing to look for is their competence in real estate taxation and ensuring it would be a good relationship.

Good luck!

There is a GREAT post regarding that here. https://www.biggerpockets.com/forums/51/topics/1215989-expla...

At the end of the day the EA and CPA are interchangeable in the tax field, the most important thing is they understand real estate and it's tax implications. I've met some VERY smart CPA's with 3-4 years in the business and I've met some "not so smart" CPA's with 20+ years.