All Forum Posts by: Alex M.

@Mindy Jensen My copy is on the way!

@Mark Nolan I was just looking into this and was recommended this book by a firm that specializes in these. 

Going Solo - America's Best-Kept Retirement Secret for the Self-Employed: What Financial Institutions Won't Tell You About Saving for Retirement

i just ordered it

@Michael Plaks So forming the LLC before year end is advantageous? I am worried I will select the wrong state to file in.

Watched a video that Nevada is good for Anonymity and since my NYC airbnb's have no insurance and are breaking my lease, Im thinking hiding my further investments is a good idea.....

But the AirBNBs are located in NYC, so should I file in NY then?  And we dont know where our future investments will be (Looking at TN, GA, TX, FL....) Also, considering getting Florida residency.  

Just kind of bogged down with all these overlapping things and don't have a call with a CPA til next week. 

Should I quickly file before year end in any state (NY, NV, DE) just to get something?

@Eric G. Thank you for this.

@Chris K.  Thanks -- hey I grew up in Honesdale and went to Scranton Prep for high school.  I'm in Hdale w the family now:)

@Scott Froehlich  Great video- thanks for the share.  I'm going to call this law firm tomorrow.  I like the idea of anonymity given my situation with NYC airbnb's.  

@John Woodrich  I expect my net income from the airbnb's to be around $150k this year.  So that's why I think it will be necessary to avoid as much of the SE tax as possible.  

I really just need to speak to a CPA and a good attorney to get this all set up.  Either of you have any idea as to whether setting up residency in Florida (since I no longer work full-time in NYC, I am considering a relocation to a family place in Miami), would be advantageous for taxes given 0% state income tax?

Would guess that since my apts for airbnb are based in NYC that I would still have to pay the tax.

Hi all,

I have some short term rentals in NYC (airbnb), but I dont have insurance on them (stupid, I know, but I have a high risk tolerance).  

That said, the STR's violate the terms of my lease, so in the event one of my guests gets injured in my property and sues the landlord, I am going to assume they'll come after me.

I know Proper Insurance provides Short Term Rental Insurance; they quoted me $600/year for each of my properties (would come out to $3600/year) for $1M in per incident and $2M in aggregate liability coverage for Personal Injury + Business Income Loss. (They can't provide insurance on any fines passed on to me in case my landlord gets fined by NYC for having illegal short term rentals in the building, so this is a risk I have to bear)

Question is:

1) Should I bite the bullet and take out the insurance policies on all of my units?

2) Can I limit the risk if I have my guests all sign Personal Injury liability waivers?

3) If 2), then does anyone have any insight as to where to get a good template for one of these?

id likely use DocuSign and get it e-signed before each guest arrives.

thanks as always for your thoughts.

@Scott Smith Yeah this is assuming you pay yourself $50K or so in salary under the S-corp. I'm expecting to make over $100K so this will definitely make the S-corp worth it for the self employment tax savings. Am I understanding this correctly? Also, the series LLC is only valid in 12 states (alabama, deleware, DC, IL, Iowa, kansas, missouri, montana, nevada, OK, TN, TX, UT). Still might be advantageous to create a Series LLC in deleware if I expect to have a few investments in a couple of these states though Id imagine.

@Lance Lvovsky  Does this not make sense?

Cant seem to find the spreadsheets.

@John Underwood I like the Roth IRA idea. I am in the process of transferring my 401k into a self directed IRA.

Hypothetically:

Traditional IRA amount: $50K

My income for 2018: $100K

So if I shift my traditional IRA into a Roth IRA this coming year, will that $50K get taxed at the marginal tax rate at $150K? Seems like unless there's a way to offset some income, it wouldn't make sense given my high tax bracket.

@Bob Langworthy  Yes but mine would be active, not passive, and thus the S Corp is beneficial since I'll  be paying self-employment taxes only on the salary I pay to myself.   What would be the benefit of being taxed as a partnership if Im doing AirBNB?

@Jon Holdman Thanks this is helpful! Generally speaking, I'd want to have a separate LLC for each real estate investment correct?

@Jeremy Kuchenbecker Thanks- I am getting my broker's license now and plan to continue buying properties and learning about real estate, so I do intend to make it my full time job.

@Lance Lvovsky OK thanks. So I'll just get my LLC set up, and then I have some time to get the S-Corp designation. Any income I make from my properties before this is officially set up will be just taxed normally then I assume?

Should also mention I may use a self-directed IRA for one of the investments. I understand you cannot use these funds for rehabbing, but can I form my LLC now and then fund it with the Self-Directed IRA in a couple of weeks?