All Forum Posts by: Chris Picciurro

Good evening - do you have full time employment outside of these real estate activities?

Good evening - I am originally from Mount Clemens, MI so familiar with Washington Township. It sounds like the project is a flip. In that case you will typically capitalize all the costs and deduct them when the property sells. If you are the only owner of the LLC, it is a disregarded entity. Feel free to message me with any other questions.

No to get too technical, but it is impossible to be a 1099 employee. Independent contractors receive 1099s. This is an important distinction because independent contractors have many more options when it comes to retirement contributions.

For an investor that has several units, we typically create a additional column  on Schedule E (assuming a personal tax return) called "General & Administrative". It is very time consuming to allocate overhead costs such as automobile, cell phone, etc. to each property. You do need to consider multi-state taxation and passive activity losses when doing this.

Ask for some referrals and check out content that the planner has posted. You will get a feel for the personality, culture, fit, etc. I look forward to seeing responses to this as we are tax strategists and planners.

I would ask for a draft of the tax return before you sign it or pay. We just recorded a really good podcast that discussed how to pick the right tax professional. Please DM me if you want the link. Good luck!

Very good question and understanding cash flow vs. tax flow issue. The tax situation is based on the property sold. If it is a primary residence, the Section 121 exclusion can apply. The transaction is considered a sale. That said, typically the taxable portion is not very significant if it's not a primary residence.

Are you looking for Tennessee specific experiences? So many different markets that provide different strategies. Nashville, Smoky Mountains, Memphis, Chattanooga, etc.

From purely a tax prospective, you have hit on the STR Tax Loophole. Obviously it has to make economic sense. If you look at the tax benefit as a return of down payment, your cash on cash return gets pretty nice.

Hi Karl - sorry to hear that your former CPA passed away. Did the CPA also help with outsourced CFO services? If not, what are you doing for bookkeeping. Depending on your needs, I can provide a recommendation. Thanks