All Forum Posts by: Lance Lvovsky

Zamontae Stinson Welcome to the forums, and south florida is a great place for real estate investing. Feel free to reach out if you have any questions.

As a buy and hold investor, you are not subject to self employment taxes. If you buy a property to rent out for a year, and then sell it, you won't have self employment taxes as you are in the business of renting property out. A flipper on the other hand who is in the business of flipping properties will be subject to self employment tax.

Definitely get with a CPA who can advise you based on the specific set of facts and circumstances that apply to you. With that being said, generally you cannot get real estate out of a Corporation without triggering tax implications. That is why you frequently see on here that real estate should generally not be held in a Corp, whether C or S Corp as getting real estate out of the Corp triggers taxes. Although not relevant to your question, I generally only advise clients who are in the business of flipping homes to form an S Corp. Otherwise, an LLC is the preferred entity, as a general rule.

Ann is spot on. Doesn't matter where your CPA is. Most CPAs are setup to work with clients all over. With that being said, if you really want someone local, then of course do what is comfortable for you as ultimately that is most important

The answer it depends. I recommend getting a CPA and an attorney on your team who can advise you on the tax and legal implications. Both the LLC and LLP offer flexibility, and both can be taxed as a partnership. Most of my clients use an LLC, as it is the most common entity structure, especially in real estate. I have some clients with LLP, usually they are structured as Family Limited Partnerships though.

The value of the LLC is tied to the value of the underlying assets. You would need to get a valuation on the assets/LLC and that would be your starting point

You might not know the answer, but is your LLC taxed as a S corp for tax purposes? Reason I ask is you mention you are flipping houses. As to your question, right now is the best time to get a CPA. Preferably one that invests in real estate. At the very least, get tax advice/planning from a CPA. But I also recommend getting your tax returns done by a CPA. Many CPAs work with clients remotely, so it doesn't have to be local. I for example have clients around the country. I think the same can be said for the other CPAs here. Hope this helps. Don't hesitate to ask additional questions.

Yoni Dagan send me a message and I can refer you to a commercial bank I have used in the past to close commercial loans in broward county.

Your accountant said you can't take mileage for your 7 properties you own in your name? If I understood that correctly, then it is time you get a new accountant. I recommend finding a qualified CPA who also invests in real estate who can advise you and help you with not only your taxes, but also tax planning and family planning (passing on wealth from one generation to the next)

Keep in mind that using your IRA to hold real estate means you lose out on the benefits of depreciation