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All Forum Posts by: Julie Groth

Julie Groth has started 20 posts and replied 55 times.

Post: New Home Builders, do you build custom?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

I'm writing a series of articles (I'm a former remodeling contractor (20 yrs) who didn't build new). Wondering if you could help me out? 

How do you feel about change orders? Why?

Do you have a fair amount of them? 

So, I'm not talking about increase/decrease in prices from the Allowance Schedule. I mean change orders, like more kitchen cabinets than were drawn on the plans. After the walls are in. Or different back window sizes after framing. Owners decided on an outdoor kitchen, not on plans. That sort of thing that requires real changes.

Much appreciated!

Post: Rental agreement with guests who book directly with me

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

Could anyone direct me to an actual rental agreement that you use (or know of a good one)? When guests book directly thru my website, seems smart to have them sign some kind of agreement. Preferably not one that is full of legalize and 72 pages long...:)

Post: How to I set price to sell my STR?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

I own a lucrative STR double (license requires homeowner to live in one side). Property has been generating $45k net income/yr. The weird thing is that appraisers will only value the house at market value and not take the business income into account

What your ideas about how to position/market this house for max value? I'm a broker so I'm the one to come up with the listing language and price.

Post: Form 8825 the correct one for STR income?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

What do you mean 'at the entity level'? Do you mean that entity that owns or operates the property, the one that filed the 8825? Does it show active or passive on the company's tax return? 

Or the character determined by the property itself and what the owner/operator of the property provides to guests?             Are these services hard and fast rules? It doesn't seem like it.

Post: Form 8825 the correct one for STR income?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

Thanks!

Post: Form 8825 the correct one for STR income?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

My CPA is new to me which is why I'm double checking her. She just completed corp returns and have yet to file individual. Her response to my email was "The passive income or loss is determined at the individual level so when completing personal return we can show as trade or business and not passive."

I'm good with my S-corp because I do other things in it too. But, now, I'm not at all sure about the STR income.

Can anyone point to the tax code for the definition of "substantial services"?? 

I thought it was active on the STR because I provide all furnishings, cooking supplies, maid cleaning before arrival, guest communication, towels/linens.

However, like Lisa Graesser said: "STR income is considered passive unless you provide significant services such as meals, activities or daily maid service like a hotel".

I'm now confused. Wonder if there is any other qualifying parameters for how this income should be considered?

 

Post: How is sale of Historic Tax Credits treated? As a cap gain?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

Sold some state tax credits at a discount. How is that income treated on tax return?

Post: Is Form 8825 correct for short term rental income on a property?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

What are the parameters that make a difference? Does it matter whether I manage the property myself or if I hire property manager? What if you have manager for part of the year of not? 

It is rented, generally, for 7 days less at a time. The income/expenses go thru a S-corp. I now manage it but in 2019, it was managed by others or a hybrid type management with me doing some things/they do some things.

I didn't realized that it mattered about the manager, I thought it was treated as ordinary income regardless. If you put it on form 8825, then that is NOT ordinary income, right?

Thanks for your response!

Post: Is Form 8825 correct for short term rental income on a property?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

I know STR income is treated as active by IRS (like a hotel) and I have S Corp. My accountant used form 8825 (rental real estate income for S Corp). Is this correct? I would have thought it should appear in a different place on the tax return. If this is not correct, could someone tell me where on tax return should the income appear?

Thanks!

Post: Form 8825 the correct one for STR income?

Julie GrothPosted
  • Residential Real Estate Investor and Broker
  • New Orleans, LA
  • Posts 55
  • Votes 19

I know STR income is treated as active by IRS (like a hotel) and I have S Corp. My accountant used form 8825 (rental real estate income for S Corp). Is this correct? I would have thought it should appear in a different place on the tax return. If this is not correct, could someone tell me where on tax return should the income appear?

Thanks!