All Forum Posts by: Joshua Thompson

Everyone has their own reasons for why they invest in what they invest in. A lot of times depending on who it is you're talking to, you will hear people say condos are one of the first things to go down when the housing market goes down and one of the last things to recover. That being said I've seen some condos have an awesome rate of returns in neighborhoods with HOA compared to SFR in similar areas.

A lot of people prefer SFR over a condo in some situations because a family is usually always trying to upgrade to an SFR. Not too many families want to upgrade to a condo.

At the end of the day it's whatever you prefer and are comfortable with.

 Hey Shan I work for a good CPA in the Agoura Hills area. If that's around your area shoot me a message.

Regardless there are some really good CPA and EA that work remotely on here. I recommend finding one that you feel knows the material and you'll be able to mesh with. 

 I've heard of certain companies out there that will challenge your assessment on your behalf but they usually take a percentage of what they save you as payment. Could be worth looking into. 

You could also send it a request on your own but you may want to do some research on the proper way to go about it that increases your chances. You probably don't want to go in there and just say "Hey this is crazy".

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.