All Forum Posts by: Joshua Thompson

They would make a good addition to my team. I was looking at Resolute but it looks like they only serve specific counties in Texas. Do you mind sending me their link if that isn't true?

 Hey Nick, I'm pretty sure 1031 exchanges are for like-kind property. Interested on how you're getting around this?

Double check with an attorney but you may want to have him write a will or trust so the property doesn't goto probate. If it does goto probate I know some places you'll be taxed on getting it out. I'm not an attorney but it maybe something you can talk to an attorney about or do more research on.

There are two versions of QB you'll hear about often around here. The first being Quickbooks online (QBO) and the second being Quickbooks desktop. Both have their pros and cons but many people enjoy QBO for its flexibility and ability to link to your bank account. 

As far as "classes" when allocating certain expenses to a property it is recommended that each property is set up as a class in QuickBooks. This allows you to look at P&L reports strictly based on classes (each property).

QB desktop I believe can last about 3 years being supported and cost a flat fee of $300 (probably gone up). 

QBO you pay monthly and can add on services like linking your bank account. The monthly dues quickly add up.

@Paul Papamarkos

You need some more detail to your questions. I'm sure plenty of people are hit with a penalty is they sell in under 5 years and (insert incorrect method of reporting here).

Maybe some more details and the reason why you're asking will generate a few good responses.

 The passive losses can be carried forward. If you have $5000 loss last year that you couldn't use and this year has $10000 in losses you can use, perfect case you would have a total of $15000 in passive losses to offset that W-2 income.

@Daniel B. Hey man, not a CPA or EA but here are a few things I've picked up on and recommend you verifying with a CPA or EA.

The passive loss a rental produces each year can be used against your earned income (W-2 wages) if you earn below $150k married. There is a phase-out area your CPA/EA can speak more about if it applies to you. However, only up to $25k in passive losses can be used to offset earned income in one tax year.

Example: You earn a $75k W-2 income and have a $26k passive loss from a rental. You can use $25k of the $26k to offset your W-2 wage.

Taxes usually aren't cut and dry like that so you must realize there are other factors that can affect this and I'm really just scratching the surface.

However, I am not sure if you are able to carry forward ALLOWABLE passive losses. You can for sure carry forward passive losses that you were unable to use in previous years.

The number you put in for your allowances on a W-4 is what I believe you're talking about. What number to put there all depends on your senerio, for example how much you make, how many dependents, are you married ect. With this information your CPA/EA should be able to give you the number you're looking for. If you earn a lot on your W-2 job you may want to claim 0 but it all depends on your situation and numbers.

 Sweet! Thanks for the correction. I'll read up on it more.

You're right on the not putting the property in an S-Corp. However, when you are an LLC and elect to be taxed like an S-Corp in CA to get around the gross receipt tax, that's different than having the properties in an S-Corp isn't it? Correct me if I'm wrong