All Forum Posts by: Jeffrey Bibby

As Lance Lvovsky stated above, the interest would be reported per the interest tracing rules to each individual property. Schedule C is not an option if the funds were used to purchase the rental properties.

Hi Quinton,

I would start looking sometime in the spring of 2018 as there is no obstacle that would stop you from getting into an FHA loan. The only thing that may hinder your plans is having to quit your current employer if you do not have employment already lined up in RI.

HI Angelle,

Because the program you purchased gives you coaching, business building, real estate investing and property management education. I would use it as start up costs and claim 5,000 the first year on your business tax return and the remainder over 180 months.

I would speak to an attorney as the Title Company sounds like it wants you to file as a foreign entity in TN.

Professional fees that relate to producing or collecting taxable income or receiving tax advice are deductible. 

Remember that the CPA does not have to audit the client. If you give a profit and loss statement that looks in line with income and expenses and the tax return is completed per that statement, who is at fault? So, yes the CPA should charge for audit defense if the mistake is with the information and not with the preparation.

Hi Daniel,

Let me know if you need any help..

Hi Katherine,

Both types of income are considered active and can be distributed with reasonable compensation in the form of W-2 income and the remainder distribution income which bypasses the FICA/Medicare tax. This can amount to substantial tax savings, when done this way. I may have considered the LLC partnership with two LLC's taxed as S-corps underneath each owned individually by the two partners. This would have distributed the 60/40 split of net income down to the S-corps and the way it is distributed would have been up to each of you individually. It makes for less disagreements and adds Solo-K benefits.

Hi Matthew, 

My office is in Pawtucket, RI,   let me know if you need any help.

You should absolutely be taking this to a CPA. All expenses should have been capitalized in 2016 and taken against the income in 2017. But please get yourself involved with a competent Real Estate CPA.

Welcome Gary.  I am also a CPA and down the street in Rhode Island. We can probably share similar stories and goals. Keep us updated on your progress!