All Forum Posts by: Jana Cain

Keeping business assets separate from your personal assets is key. You don't necessarily need a separate bank account for each property, but you for sure need at least one account that you run all of your business operations through. The loan type (commercial vs residential) and the name on the loan (personal vs business) don't determine whether or not you need separate bank accounts. It's essential for clean record keeping, which your tax preparer will thank you for.

You can spend all day here on the LLC vs no-LLC debate, so I won't touch that one.

@Shane H.  Unfortunate that it took a lawyer getting involved, but I'm glad to hear that your struggle has ultimately been resolved and you're on a positive track forward!

@Shane H. I'm surprised that as the master admin, you don't see a "delete" option next to the current accountant user. If all of the accountant user slots are in use, the "Invite" button will be grayed - but you should be able to delete one of the users. That piece would for sure be QB support question.

As for, ownership of the data, that actually lies with where it began. If this bookkeeper started your books for you, she owns the data. If the Quickbooks file is part of her license, she owns that, too. However, if you provided her access to your books, the data is yours. 

This is from the Quickbooks support community, where a bookkeeper asked if they needed to give up the file to a client that hadn't paid them:

"If your client brings the QuickBooks file for you to start with, then you must return the original data to them.

If not, then it's your preference to give the data to your client or you must not give the data.

In addition, if you're referring to the QuickBooks software, it depends whose name the license is under."

That said, backing up what you have access to and starting over isn't the end of the world. Yes, it could be time consuming (not totally sure you have to restore the data to desktop and then move it back again - it's worth double checking), but at least you still have that access and it's not like you have zero books whatsoever. :-\ And then that way, you can set up this new/duplicated file on your own QBO subscription, which your new accountant can still wholesale bill for you to pass on those savings (I have clients set up this way - they own the file, but they get billed through me).

I hope you're able to come to a resolution on this soon! I'm so sorry you're experiencing this. There are definitely better ways to be spending your time.

@Shane H. How frustrating! As the master admin, have you at least been able to remove her as an accountant user and invite your new accountant as the accountant user? I haven't experienced this myself, but I'm curious if after your new accountant has been invited, if he can then take over the billing from his access. I'm the master admin for some of my clients, and when I go to "Manage Users" from within their file, I can delete regular users, and delete + invite accountant users. 

A quick search in the QBO support community says that above should work (e.g. invite new accountant, new accountant than clicks "add existing client" from their subscription management page and the billing should transfer).

Good luck!

@Chris Kirkman Can you shed some light on what you've heard about possible tax benefits based on the state where the LLC is incorporated? LLC tax returns are basically a P&L to determine if you owe any additional fees on top of the annual fee for that state (tax rates and thresholds vary by state). It becomes a "how much do I pay to maintain the LLC in " question, vs a "I get additional tax benefits (e.g. deductions) because the LLC is incorporated in ". That said, there could be state-based incentives for corporations who do business in those states, but that would be applied on the state return that accompanies your federal corporate return (partnership or corporation), which is different than the LLC return. 

If you and your wife are the only members of these LLCs and file a joint return, the IRS is inclined to disregard them as separate entities anyways, so my previous point about corporate tax benefits would be moot, as all activities of these LLCs would be captured on your individual tax return, not a corporate return.

If you haven't done so already, it could be worthwhile to explore this with a hired tax pro so you can get into all of the details of your situation to determine what truly is most tax advantageous for you. There's no single "this is the best tax-advantaged state for an LLC" answer that would apply to all tax situations.

@Jake Steven Association expenditures aren't *completely* out of your control, but it can be helpful to have a competent property manager to assist with navigating the waters. I'm on several committees for my HOA (including our Finance committee), and that allows me to be opinionated about where my dollars are spent. That said, contracted services via your HOA are no different than contracted services for anything else - price, quality, and scope all range. When you break down the details of what's important to/for the community, that often drives the decision making. 

As @Patricia Steiner stated, by signing the purchase agreement/contract, you are accepting the HOA and all of it's rules (for better or worse). HOAs are required to keep x amount in reserves for capex (as dictated by an annual reserve study) so that you [ideally] don't run into the need for special assessments. Ask the family member to show you the financials.

The flip side is that you don't have to worry about saving for capex on your own. If I weren't paying $400 to my HOA every month, I theoretically would be saving that amount to: replace my own roof and windows, maintain the exterior of my home (painting, siding, porch steps, etc), pay for my own landscaping and property security, etc. Would it cost me that much to do on my own? Maybe, maybe not.

Also, if you like the condo otherwise, but you think you could do a better job at managing the finances, buy it but get involved. You'll drive yourself crazy if you can't afford the time to play a role in improving the situation and instead opt to be a disgruntled owner.

Just chiming in to agree with @Jay Hinrichs and @Brandon Hall. The last thing you want is for a new (to you) tax pro rushing through your return just to get the business. You can certainly attempt the due diligence now if you can get the appointments, but I would expect that filing an extension will be likely for TY2018 once you find someone you think would be a better fit for you.

It sounds like the reporting threshold may not have been yet, meaning that the bank didn't need to send you a 1098. It's possible you may still be able to deduct the interest you've paid, though. Check with your tax pro to be sure.

Hi Anthony, Scott is correct - there may be serious tax implications of what you have described. You would be best served by consulting with a tax professional who can evaluate your particular tax situation to provide the best guidance. Good luck!

@Alex Turchetta If you haven't already, you'll want to double check that both your loan and your job for sure qualify for the loan forgiveness program. As of last September, 99% of applicants in the public service loan forgiveness program were rejected. 10-20 years is a long time to carry that burden to not have it turn out the way you plan. 

Totally not trying to be a downer, but it could be worthwhile to also look at what kind of sacrifice could allow you to pay off the loans and then get into REI, just in case.