All Forum Posts by: Mark Lucido

Does the commercial property you're looking at acquiring already have tenants in place?  If so, you can probably get the seller to give you a copy of their word template during the DD phase.  

Yea or time consuming depending on who does your taxes for you. I do my own taxes through TurboTax Business edition to reduce the cost. I have 2 LLCs so end up having to do 2 1065s. These also have to be done before you can run your personal taxes. This year the IRS accelerated the business filing deadline to March 15 so I was in a mad rush to get those returns out. This was only my second year filing and I wasn't schooled yet on reporting everything on the 8825 so I ended up having to file two amendments before I could even start my personal return. As for the mortgage lending, I have commercial properties and asked my lender about creating a Series LLC and since he wasn't too familiar with the concept he wasn't comfortable lending to any child LLC under the series. Also with the series LLC, you still have to create the child for each property so I'm not sure if you're really buying yourself any savings. What it may come down to for you is the value of the property(ies), the value of your total equity and what level of risk you feel comfortable with in maintaining that under a single LLC. What I've learned through the BP Blogs and Forum posts is that the more leveraged you are and less equity you maintain then the more undesirable you become in a lawsuit.

I typically establish a separate LLC for each property. The reason for structuring it this way is to maximize my protections in case of lawsuit. If one LLC gets sued then the other properties are still protected within their own respective LLC.

Sorry @Lance Lvovsky I should have been more clear.  It's passed through personally as a K1 so technically my LLCs are Partnerships and not disregarded entity.  Just wanted to make that clarification - understand it's still a passthrough though.

I'm curious how other investors are making their charitable donations, particularly if they own an LLC. I'm considering making my donations from my LLCs and in my particular instance, my LLC Partnership income flows through straight to my personal taxes. If I make the donations from the LLC then there might be a small benefit of reducing my overall LLC income by the donation amount. If I make the donation personally, I'm already in such a high tax bracket that I'm not sure how much I can benefit from it. What are others doing?

Thanks Steven Hamilton II for the feedback. Since I'm also using QuickBooks it was easy to toggle back and forth between TurboTax and the Balance Sheet. I also made several backups of my files along the way. Part of my original confusion was that those transactions didn't seem to be directly related to Rental Activity but rather expenses of the business itself. I agree that most people shouldn't be doing their own partnership taxes if they don't have the patience or inclination to traverse the scores of IRS documents. [side rant] - I'm also of the opinion though that if you don't at least try it on your own then you'll never have an appreciation for how convoluted our tax code is and you end up believing the hype that certain TV Celebrities turned Politicians cheat on their taxes which leads to bad decisions in the voting booth (not to get all political or anything). I do appreciate your feedback and suggestions though and I hope there's no offense.

Thanks for the quick response @Lance Lvovsky.  I'm assuming since I did it wrong to begin with I'll probably also need to file a 1065X Amended Return?

Thanks

mark

Is there an expert on the 8825 that can advise what's the best way to handle Misc. Expenses such as Accounting, Office Expenses, Suplies, Tools, etc.? I just started my LLC in 2015 and filed my return last year logging these transactions under standard Business Expense deductions instead of on the 8825. This ends up showing a business loss (since all my income is on the 8825 under Rental Income) and when it comes time to do my personal taxes, I end up having to enter two separate K1's in Turbo Tax on my personal return: one for the Business Income/Loss and one for Rental Income/Loss. Does it really matter where these expenses are tracked?

Thanks

mark

Rocky V. - can you please send me the FB page also? Thanks!

@Zackery Bagby - I'm a Commercial Investor in the DFW area.  I address this exact question in one of my blog posts here on BiggerPockets.  Read it if you have the time and it might answer some of your questions:  

https://www.biggerpockets.com/blogs/8448/54690-so-...