All Forum Posts by: Cameron Skinner

you usally have to "capitalize" your improvements on a major rehab.  That meanes you have to add to your cost baises and then start to depreciate the improvements along with the cost of the structure over 27.5 years.  You may be able to "cost segragate" some of your improvements and accellarate your depreciation. This is why you should hire a good tax professional in your area that invest in real estate themselves, some one with some letters behind there name not those franchise types.  I promise they will save you more in taxes than there fee. 

architects are licensed in their respective states I would find out who regulates them and threaten to file a complaint with the licensing agency in your state, if you don't have a permit ready set of plans by a specific date.  No professional wants to have to answer to the licensing board.  Hope this helps good luck!

IRS allows you to use the cost approach when doing cost segregation instead of paying for a st study.  If your fixing up a property, basically means you can accelerate the deprecation on the special mechanical you purchased and placed into service,  basically 5 years double declining balance (DB) for special mechanical, stuff like plumbing fixtures, carpet, light fixtures ect.  15 years DB site improvements, driveway landscape ect.  You can google cost segregation study PDF, there are lots of examples online that detail items you can take.  Hope this helps good luck

@George Bittar

If it were me I would go to irs.gov and get a new tin either way the bank goes. Even though you bought the LLC for "State" purposes you do not want to absorb any federal tax liability of the previous owners. They need to file a final return with their ein and you need to start a new tax history with your ein. In FL transfer taxes are brutal so sometimes we might sell a big commercial building in an LLC on a bill of sale vs a deed. New owners get "name" LLC and building. But they get all new ein and state sales tax numbers so they don't absorb any tax liability from previous owners.

Hope this helps,  good luck

you can authorize someone to sign documents for your LLCs. Imagine if the CEO of Starbucks had to sign every lease on the buildings they rent? They authorize a regional director or employee to enter into contracts for them, if you want to make it more formal you could provide him a notarized affidavit giving him the authority to sign leases on behalf of the LLC

@Chris Soignier is absolutely correct you have to be self employed to take advantage of a solo 401k but if your already investing a good tax professional can help you set up and properly structure your investment as a business to take advantage of the solo 401k

Hope this helps good luck

@Tim Porsche

I strongly suggest you look at a self-directed solo 401(k). They are much more flexible than a self-directed IRA, especially in regards to real estate. You don't need a custodian and you can be your own trustee with a solo 401k. Go to mysolo401k.net they have lots of good info also call Vern JV associates you can go401kadm.com web site to get his number, as I can't post numbers on the forum he's really good, you can tell him I recommended you give him a call. About 500 to set up 200 a year to keep plan docs compliant.

Hope this helps good luck

@Brian Eastman thanks for help

one of the biggest tax advantages of real estate is the fact that when you die your kis get stepped up basis.  A huge mistake sometimes people make is they gift their properties to their kids right before they die to try and avoid probate. This means they get carryover basis.  

Stepped up basis means they get the property at the fair market value on the date of your death so if they sell it so no tax but if they keep it they get to start depreciation at the fair market value less the land value for the next 27 1/2 years

Carryover basis means they get the property at whatever your basis is at the time of transfer

Hope this helps good luck

@Brian Eastman thank you, no loan so that's not an issue but my only question is you mentioned a JV so does it need to be organic partnership just me and the 401(k) on title, and some sort of joint venture agreement or can I put in an LLC ?