All Forum Posts by: Lance Lvovsky

This is speaking from memory as I am typing this on my phone (no access to the code) but I do believe it is Code Section 461

Sounds like you might need a new CPA. Costs incurred to rehab a property before placing it in service need to be capitalized

Expenses incurred to rehab and renovate a property are capitalized and depreciation starts the date you place the property in service. The "in-service date" is when you advertise the property as available for rent. So to answer your question, you cannot expense the 15k in 2016.

Step us basis is achieved when the asset is inherited from another taxpayer's Estate. It would depend on the specific set of circumstances on whether there would be step up basis.

In general, if a buy and hold investor holds an asset is their name or in a Revocable Living Trust, then upon their passing, the beneficiaries will receive step up basis.

You should have one CPA who is qualified to advise you on all your transactions, no matter what state they are in. This CPA should play an important role on your team. Ideally you want someone who invests in real estate. 

Let me know if you have any questions. 

@Rachan M. There is no limit to the amount of gifts. In general, for gifts from a foreign individual, From 3520 will need to be filed if the gift exceeds 100k. Once again, Form 3520 is an information return only as there is no tax due, but failure to file this form can result in penalties. 

The gift proceeds will not be subject to income tax. Gift tax is assessed on the donor. For a non US person, there are no US gift tax implications, however Form 3520 may be required to be completed depending on the amount of the gift. Let me know if you have any other questions.

Generally speaking, there would be no income taxes on a transfer of a property to a LLC that is treated as a Partnership for tax purposes. You should, however, consult with a CPA who has all the facts related to your situation.

@Dustin Baldwin Definitely recommend you find a good CPA and attorney to assist you. From a tax perspective, depending on your specific tax situation, it may be worthwhile to elect for your LLC to be taxed as an S Corp. Something to keep in mind.

It depends on the ownership structure of your other LLC's. You should speak with a CPA who can advise you accordingly.