All Forum Posts by: Joshua Thompson

 Of course and good luck! A good sit-down conversation with the tax professional should shed some light on the topic and help you determine the next steps.

This can be fairly straightforward, depending on your agreement and if a partnership return was ever filed, you'll want to report half or your portion of the basis in the property as well as half the sale price minus expenses. This should quickly calculate your half and their half to  report. Now depending on how this property was reported in the past, the agreement the two of you made, and possibly other factors this answer can change.

If you materially participate and the rental qualifies as a STR you should be able to take advantage of bonus depreciation on a STR. Keep in mind this year bonus depreciation is 60%. You do not need to have the property in your personal name, it can be owned by an LLC you're sole owner of without having to file a separate tax return.

For the most part yes and depending on what you have going on in life an LLC might be overkill and why I think John gave a terrific answer

Lol yes, so many different opinions right! I don't want to give my opinion to you here based on my experience with clients but I would definitely ask your tax professional on their opinion because you might be surprised by their answer. To clear up things though if you have an LLC just for rental properties you won't get any tax benefits for having an LLC other than an additional expense.

John did a great job answering this! The due on sale clause will be the biggest worry, even though it's uncommon for banks to enforce it, they have the opportunity to at any time. Typically they give you 30ish days to get the funds and in the time you might be able to find a new lender but every bank is different.

Yes you'll still be able to claim the tax benefits as long as you qualify even if the property is in your LLC. Know your tax situation first though because real estate may or may not benefit your tax situation!

Hi Roy! Welcome to the forums. I would highly recommend reaching out to tax professionals you see active in the forums or feel free to us the "Build your investing team" feature above and select a tax professional. We aren't supposed to promote our firms in the forums so this would be the best way to go or speak with fellow investors.

Hi Dave,

I agree with Zachary above that it is fairly uncommon for an experienced tax professional to review only a certain portion or even an entire return someone has self-prepared. The issues is time reviewing everything, we'll need all your documents and if we see a number wrong we can't go into the tax software to see what went wrong, it would be a lot of back and forth. Most cases it would take more time to review these than actually doing it ourselves especially if we are being thorough. If you insist on having someone review it, I believe TurboTax has an ask-accountant feature but I doubt they have extensive real estate knowledge.

Yes, this can be done and people do it all the time, especially now. This is an area that could create a huge issue if not done correctly so I wouldn't advise doing it yourself as the 3115 can be a pain lol. Also, before doing so ensure you can take full advantage of a cost segregation on a STR.

You don't need to amend prior year returns to claim it.