All Forum Posts by: Larry Shaw

I agree that 'getting a good CPA' is the best strategy, I am more interested in understanding rules and regulations at a deep level myself so that I can identify 'a good CPA' and be just as knowledgeable. I do understand that tax code is vague at best in many areas, but I will review the federal tax code and legal cases to have a solid understanding prior to reaching out to any CPAs and ultimately making an informed decision. 

My general understanding is that you can not depreciate your primary residence, but you can depreciate an investment asset on taxes. If I use a 2nd home loan, can I still depreciate that asset if I STR 11 months of the year, and stay in it 1 month? Is there a definitive rule I can use when determining when I can or can't depreciate a 2nd home?

@Jabbar Adesada Thank you that is super helpful. I'm already familiar with Avery Carl, and will plan to use her team on my first deal. Thank you for detailing these guidelines, and it sounds like the 180/14 day idea is simply one lender's interpretation of non-descript guideline verbiage. Thanks again, super helpful! Larry

@Judy Murphy Thank you!! I didn't know about this potential out of state LLC issue! So many things to consider. I'm thinking there is a resource with all of these checklists to help avoid an 'oops' so hopefully I'll find that all encompassing resource digging through this site.

@Lauren Kormylo that is super helpful. I do plan to self manage, but the 180 days per year restriction seems to limit a STR in a popular area. Am I understanding that correctly that after 1 year you can rent out more than 180 days even without a refinance, or is a refinance required to rent out more than 180 days in a year, after year 1?

@Pete Harper Thanks for the great breakdown of your experience in transferring title to your LLC and working the finances, this is super helpful for me. You mentioned registering with the county, did you have your LLC in the country/state of the property, or in a different county/state? I'm told that my LLC can be out of state, but wanted to double check on that. My plan is similar to yours in doing the first in my name, and future deals in the name of the LLC. I can deal with a bit of PIA on the first one! Larry

@John Mocker Thank you John for your insight, I did not consider these factors. I will definitely need to verify that the insurance coverage remains after a transfer has occurred, and good to know about potential issues if business has other dealings. 

@Ken Boone That is good information that I wasn't previously aware of. My goal is to purchase the house in a mortgage under my name, transfer title to my LLC, and after 3 years refinance into a portfolio loan consisting of multiple properties under my LLC. Based on what you mentioned, that one property could potentially be breaking the corporate veil for that 3 year period, so there could potentially be additional personal risk with that one property. Thanks again, Larry

@John Underwood Thank you for that advice. You mentioned potentially not needing to place the STR under an LLC as long as having insurance and and mortgage. From my perspective, I would rather have it in an LLC, not necessarily because of the legal protection factor, but more so that I can keep all of my books in one place and not have to track and manage income and expenses both in my LLC for business dealings, and in my personal name outside of personal expenses.

@Jabari Long Thank you, and I will definitely double check with my tax pro prior to making any moves. I wasn't clear how to define a business asset if the title is under the business and the mortgage is under me personally, but it sounds like wherever the asset is titled is where the books would be processed under, then all funds would be taken out of the business account to make payments to the mortgage. Thanks again, Larry