All Forum Posts by: Lance Lvovsky

@Kin Lay Below are answers to your questions. I recommend you chat with a CPA who can advise you how to best "shift" your income in order to maximize your earnings potential while minimizing your tax liabilities.

1. Yes, you can invest in both a 401K and the IRA at the same time. Deductions to an IRA get phased-out depending on your AGI (Adjusted Gross Income).

2. I am not so sure giving a money manager is the best approach for your 401k. I try to steer clients into the direction of investing in such a way where fees are reduced. Generally, that means index funds and/or ETFs that track a certain index. I think there is a place for investment advisors, but I generally do not recommend clients (especially younger people) give their money to an investment advisor until they have accumulated substantial wealth.

3. The 401k limit is $18,000 regardless of your earnings. There is a catch-up contribution ($6,000) available to those over the age of 50. As for the IRA, as I mentioned above, depending on your AGI, you might not get a tax deduction if investing in a Traditional IRA.

4. Yes, there certainly are. For one, consider a Roth IRA as it sounds like your income will only go up. Next, I would discuss with a CPA who can provide tailored advice unique to your situation.

Yes, I would find a good CPA who not only understands real estate taxation, but can also advise you on the proper ways to fund the retirement accounts as a self employed individual. If you are open to working with a CPA remotely, you will widen your pool

Yes, there is a grouping election that can be made. I do not recommend doing this in TurboTax. You need a CPA who can provide you with professional advice on this. I may sound biased, but a good CPA is worth the investment.

There are some exceptions to where you may still qualify for a partial gain exclusion. For example, job relocation. Consult with a CPA on this.

First you should decide whether you are fine working with a CPA remotely. If you are only set on working with a local CPA, then your "pool" of CPAs will be limited. Most of us work with clients remotely and you should look for a CPA who invests in real estate and understands the tax laws surrounding real estate. Your CPA should be your financial advisor and someone you can call on anytime with a question. Let me know if you have any questions.

@Liz C. I sent out a colleague request but it is "pending". 

I agree with Taylor. While you need to do what is most comfortable for you, don't necessarily limit yourself to a local CPA. There are plenty of us CPAs that work with clients remotely, and ultimately you want a CPA who works with other real estate investors. Furthermore, you need a CPA who understands tax planning, and can create tailored tax planning ideas that fit your specific needs. If you have a sizeable estate, then a CPA who practices estate planning will be an added bonus. Now if you only feel comfortable working with a local CPA, then by all means, look for one that fits the above criteria.

@Liz C. I will send you a PM. 

There is a home sale exclusion where several requirements must be met, with one of them being the 2 out of 5 years requirement. The capital gains rate depend on your ordinary income tax rate

You need an attorney who practices in trust/estate planning and real estate. Ultimately your attorney will draft a Trust agreement with certain provisions in the trust regarding holding real property. In addition, you need a CPA who understands tax planning when it comes to trusts and of course your CPA should also invest in real estate