All Forum Posts by: Justin Chan

@Justin Chan, You might be eligible for a partial tax free exclusion if you had to move out of the house for medical or job related reasons.  Your accountant would be the one to decide that.

If you do qualify you will be able to take the gain allocated for that exclusion tax free.  And you can 1031 exchange the rest.  

Best of both worlds if you qualify.  But if you don't you can still do the 1031 exchange on the entirety.

@Justin Chan I'm not sure location matters in the case of cost seg, but they should be familiar with Rhode Island State tax laws, and Real Estate

If you don;t get any recommendations for RI-based CPA and you are open to working with CPA remotely, you might check out Biggerpockets Tax Directory of Real Estate CPAs accepting new clients.

Keep in mind, with the 10/15 filing deadline around the corner, you are searching at a busy time of the year. 

@Justin Chan I have someone who may be able to help, he’s a CPA and an active investor in RI.

Keep in mind that there’s often a threshold for cost segregation studies to be worth it, and it may not be worth it (will cost more than benefit received) for a small multi like a 2-4 family.

But obviously that’s a conversation you can have in detail with whatever CPA you consult on this question 😊

@Justin Chan Most areas in  FL with 1 acre lots Require 1 acre for a home site. Talk to the local Building and Planning dept., they can tell you what the minimum lot sizes are for that particular subdivision. If there is no public water/sewer service there, that is the reason as typically there is a 1 acre minimum for wells and septic.

@Justin Chan

We work with a few that will, but if it’s cross states may increase the rate and or points. Happy to run it by them

 Hello Justin,

So mixed use complicates things as many lenders especially with the current interest rates will want to greatly reduce risk. Some lenders may lend for a line of credit  but you'll have to search for them. Commercial lenders will be the people to speak to for a line of credit on a mixed use property. Does the property cashflow after expenses? May not be impossible but you'll have to search for them. Your FICO, equity in the property, location in RI(whether rural location or not) will be a factor