All Forum Posts by: Lance Lvovsky

Net investment income tax is effectively a surcharge and assessed when taxpayers income exceed a certain threshold. That threshold is 200,000 or $250,000 of modified adjusted gross income based on your filing status. There is more to this calculation and other moving components which you can speak to your CPA about.

Unless the attorney spent time reviewing your facts; this may not be good advice. Placing your daughter on the deed is a gift under gift tax law as you are creating a joint tenancy. You may need to file a gift tax return. It also may not be tax efficient to do this and you may be better off creating a transfer of death designation (if your state law allows it for real estate) or placing the property in a revocable living trust. My recommendations would allow for a full step up on basis upon your death; important if you have a built in unrealized gain on the residence. 

The tax you refer to is based on your ordinary income tax bracket but capped at 25%. Net investment income tax may apply (3.8%). Consult with your tax advisor. 

The one issuing the Forms 1099 to contractors would be the landlord. Whether you are engaged in a trade or business is a facts and circumstances test. A landlord operating one rental may have an argument they are not operating a trade or business. Compare this to a rental operation with multiple rentals. It also depends on certain tax positions you may take on your income tax return; for example with respect to qualified business income deduction - IRC 199A. 

In short you need to speak with your CPA to see whether you need to file forms 1099. 

Daniel gave you good advice on both ends - look up online here for CPAs. 

Secondly, paying $200 a year just doesn’t make sense. Not sure what you are expecting but a quality tax adviser will cost you money. 

There are a handful of accountants on the forums in Florida. You may consider doing a search online or on these forms and setting up several phone consultations.

If you are looking for local CPAs, speaking with other investors is a good place to start. As you are in need of someone familiar with multi state taxation then you may need a firm that has state tax specialists who can provide you with state tax specific advice. 

@Chris K.

One method is reviewing appraisal data for the local county office to determine allocations between land and house.

@Chris K.

You cannot depreciate land.

@Daniel Uchimoto

Consider asking for recommendations from friends and business associates. There are also accountants here that have teams of specialists who can help you.