All Forum Posts by: Chris Picciurro

I don't know a colleague in those specific areas. Are you open to a remote relationship if the CPA has the expertise you are looking for?

You can carry losses forward. Review IRS Form 8582 for details or talk to your tax professional. Good luck!

I would personally not do your own cost segregation. There are a lot of very economical options for a $500K building that comes with audit protection. The 20% isn't an automatic deduction. Each property is unique.

Is this an activity that you will continue to grow as a business or more passively? 

I am a CPA with over 20 years of experience. I preface my comment with this - we do not take on tax preparation-only work and do not take on new client between December 1 and May 1 of each year. You will get what you pay for. I would encourage you to find a CPA with a lot of experience with rentals properties. Focus on the value received and relationship. In my opinion, a good CPA firm adds 5x to 10x value for cost. I would potential file an extension and take time to find the right firm. Another option is to find a local referral and get through 2022 then look for a permanent real estate focused solution. Finally - strategy can be separate than tax preparation. If you want a recommendation for strategy please message me. Happy to provide!

The person lending doesn't really obtain tax benefits. The interest you pay would be income to the lender. One idea is for the family member to use a self-directed retirement account to lend so they defer the tax on interest earned. There are rules for some family members in this situation that a SDIRA person can answer. I am just giving you thoughts from the CPA/tax side.

Interesting situation - just consider that an LLC doesn't provide additional tax deductions in this case. Ordinary and necessary expenses are deductible. The LLC provides asset protection (still valuable). You also have to consider property taxes on a non-homesteaded property. If you reside in one of the units (house hack) then 2/3 of the property would be consider a rental property business. That activity will be reported on your personal return or, if a multi-member LLC if formed, a partnership return - Form 1065. Maybe your family member would consider being a lender and you own the property.....

Does the CPA firm need to be in Dallas? A remote option might work well considering Texas has no personal state income tax and an easy to navigate Franchise tax.

Great question - I'm a CPA and would love to find some for referring tax work out. 

For your W-2 hours to count you must be at least a 5% owner of the property management business. If those hours count it sounds like REP status is attainable. There are special rules for short-term rentals that allow losses for non-REP status.