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All Forum Posts by: Lance Lvovsky

Lance Lvovsky has started 17 posts and replied 1374 times.

Post: Newbie from Apopka FL

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753

Welcome to the forums @Russell Holmes! As Ronald mentioned, keep up the excellent work. I love working with real estate investors who are hungry to grow their portfolio.

The BP podcasts are fantastic, and I highly recommend you start listening to them.

Don't hesitate to reach out with any questions.

Post: How do Banks look Self Employed (1099) v. W-2

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753
Kenneth Garrett More often than not, it is advantageous to run 1099 income via a S Corp from a tax perspective. Surely it depends on the facts and circumstances specific to you, but that could help you in both financing your properties and also saving money on taxes.

Post: Filing second year return for partnership - first year missed

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753

I agree with @Brandon Hall. I would file the 2016 Form 1065 as the initial year return. If the IRS ever asks about 2015, the Small Partnership Exception would be available to you and no penalties would be incurred.

Also, to others who may be reading, the Small Partnership Exception would NOT apply if one of the partners is an entity (example: LLC).

Post: Question for CPA about using IRA

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753

Both @Brian Eastman and @Dmitriy Fomichenko are correct. Having no depreciation benefit is an important consideration.

Most of my clients who want to use their IRA for something other than stocks will use the IRA to invest in notes, or make private loans to other investors. Given that under current tax law, interest income is taxed at ordinary income rates, it is a good idea to invest in notes in an IRA as this is a tax favorable strategy. On the other hand, generally clients continue their buy and hold investing outside of an IRA, to reap the benefits of depreciation.

Post: Israelis Investing in America

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753

I assume you mean under what implications do U.S. Federal tax laws apply to an Israeli citizen buying property in the U.S.?

Here is a good page from the IRS that explains the tax implications:

https://www.irs.gov/individuals/international-taxp...

Basically, you would likely be filing a Form 1040NR. You still get the same depreciation benefits as anyone else on property held here in America. 

I definitely recommend you get with a CPA. You would want a CPA that has experience in both real estate and working with foreigners. Let me know if you have any other questions I can answer for you.

P.S. I was in Jerusalem last year... not too far from you. 

Post: Scenario: Where do I pay taxes?

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753

@Diego Torres I see that you are from Miami, so you know that FL does not have any state income tax. Assuming the property you bought is in a state that does have income tax, then you will be taxed as a "nonresident" and it will be on the income sourced to the 4 unit commercial property (this is if the property is in your name).

Your "management llc" is registered in FL? If your LLC is registered in FL and the LLC owns the property, then you would need to file a state return with the income sourced from the commercial property taxed in that state.

Post: More questions about depreciation

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753

FYI, loan origination fees/"points" are amortized over the life of the loan.

Post: Real estate tax advisor

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753
You should first ask yourself whether you want a local CPA or you don't mind working with a remote CPA. I would then interview a couple CPA's and see who you think you would work best with. Make sure they invest in Real Estate too, and understand Tax Planning in addition to Tax Compliance.

Post: Newbie needs your advice. Should I hire a CPA or use Turbotax?

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753
Generally you would do an allocation of your purchase price to the land and building portion based on the allocation done by the county property appraiser. As to your question about hiring a CPA, I am probably biased as I am a CPA, but I think ultimately you need to do what's best for you. While you may be able to get away doing your taxes yourself this year, you will need a CPA as you grow portfolio. I will also tell you that far too often I have seen people file incorrect taxes. So in summary, a CPA can add real value to your tax return. Plus, a good CPA can assist you with tax planning - and that's where things get really exciting. Feel free to reach out or post here with questions.

Post: Bought A Owner Occupied Duplex, Now What?

Lance Lvovsky
Pro Member
Posted
  • Accountant
  • Fort Lauderdale, FL
  • Posts 1,407
  • Votes 753
Banks are hesitant to go above 80% LTV on a HELOC but I found a credit union that will go as high as 90%. Message me if you want the contact info.