All Forum Posts by: Chris Picciurro

Be very careful when using LLCs due to the Canadian Revenue Agency's view of LLCs - 

Very good questions Diane - this podcast episode has very relevant content - Legal Insights

Good morning Michael - as a resident of NY, you will pay tax on all your income. You will also file a state and local (if applicable) return in Ohio (not fun due to school district tax returns). If you owe state tax in Ohio, you will receive a tax credit on your NY return. Essentially, you are not double taxed. At the end of the day you pay tax on all income based on the NY state tax rate.     

NY tax guidance

That said, if you have rental properties taxable income should be very low due to depreciation. Just make sure you CPA understands that  states handle bonus depreciation differently. Not all states honor the federal tax deduction rules.

Good evening BP! I co-host a tax planning related podcast. We are looking for an expert in Deferred Sales Trusts to be a guest AND potential referral source. Please let me know if you have any recommendations. Posting here or a DM works great. Thank you all.

There are special rules for STRs that supersede normal passive activity rules. These rules are typically referred to as "Short-Term Rental Loophole". I am happy to share additional information if you DM me. Take care!

You are referring to the Section 121 exclusion. A donation and gift are very different from a tax perspective. Was the $300,000 gifted by parents? How much will the property be sold for?

Here is my advice - first run a tax projection to determine the tax due if you do nothing. Then consider the following:
Qualified Opportunity Zone fund
1031 exchange
Tax-advantaged investments that provide you deductible (business not real estate) losses
Harvest capital losses
Cost segregation studies on new property (land is not depreciable)
Deferred sales trust

Feel free to message me with any questions.

The fair market value does not play a role in cost segregation. The cost basis is key. Are you a REP status person? Is this an STR? Cost segs are one of my favorite tax planning tools yet the tax benefit is dependent on facts and circumstances.

Exciting to hear that you are jumping into real estate investing. I also understand you live in a high value market. That said, I would not jump into long distance BRRRR without developing relationships with some boots on the group people in your target market. Make sure you visit them in person first.

Understanding tax free vs. tax deferred is important. Nice job putting money into the Roth. It is a common understanding that tax rates will increase in the future so don't stress about pre-tax contributions to an IRS or 401k. Having income producing real estate assets is a great way to set yourself up in retirement.