All Forum Posts by: Mohamed Youssef

It's always better to check with your brother's CPA since he has all the background, but I would say short-term rental with material participation requirements met by your brother, then do cost segregation. Don't follow a strategy only to save on taxes. You have to do the research on the property itself to make sure it makes sense and is a good investment strategy first.

Hello, the State to incorporate is usually the same where the property is located. Usually, a single-member LLC to avoid filing separate tax returns. If you have multiple members it will be treated as a partnership and will require a separate tax return.

Hi Sandra, as soon as you can estimate the amount of gain you will recognize from the flip you should pay an estimated tax on that amount. Until then, no need to make any estimates since the amount of gain can't be calculated.

If anyone is still interested in a REPS log I created one in a Google sheet with some examples. Feel free to let me know and I will be happy to share the link. 

 Hello Wesley, do you mind sharing the name of the RE tax conference you were referring to? I'm not too far from San Diego and always looking for good conferences close by to attend that focus on RE and taxes. Thank you!

If it is only one flip for now, I suggest you find a CPA just to advise you on State filing requirements, ensure you are claiming all write-offs and issuing 1099s, etc. The CPA does not have to be specialized in RE if it's only one property.

If you have lived in the property for more than 14 days or more than 10% of the rental days then yes, no rental losses are allowed (i.e. bonus depreciation). You can find this under section 280 A

You may want to consider www.xero.com as a QuickBooks alternative. I highly recommend it and their prices for basic accounting ledger is much more reasonable than QB.

This is not true. Rental income is reduced by all rental expenses (i.e. interest, repairs, property tax, etc.) and the result is a net rental income or loss. If you have a net rental income then you pay tax on that amount, but if you have a net rental loss then you get to use $25K of that loss if income is less than $150K and the unused passive loss gets deferred to future periods.