All Forum Posts by: Rick Trivedi

@Nishan Akwalia what is the motivation behind putting it under one spouse's name? This whole exercise may or may not make sense depending on the reason for doing it. This may not be entirely a CPA question, you will need to consult with an attorney as well.

https://www.doorloop.com/blog/transfer-rental-property-from-... is a good resource.

@Anthony Dupre depends on the lender. one possible way to avoid due on sale is to time it with Refi.

@Christine Aledam if you are planning to invest in Vegas or even otherwise in a different state with the mindset of growing the portfolio, might be best to do it under LLC. Even though there are a lot of arguments around whether LLC truly provides a protection, in the end, having it gives you a possibility... rather than not having it at all. Assuming it will be Single Member LLC (you as a member/manager), it will come back on your schedule E anyway, so only thing you loose is $800 in california and bit more of paperwork but that preps you for future.

Note - this is a very high level advise and mostly a personal preference. It can be argued either way. But as I mentioned, IMO you dont loose a whole lot by having it and stand a chance to gain for little extra cost.

GDrive works perfect. Thanks @Costin I.

@Costin I. - Thanks for posting the flow chart. The PNG resolution is really low, cant really read it. Also the link to the pastboard.co isnt working either. Any chance you can upload a better quality image? or ideally a PDF?

Hi @David A., On your ADU project, I was wondering if you can share details about the HVAC and water heater? I am not planning to get any gas connection so wondering if you had all electric as well and what kind of systems did you go with and if you are happy with it

KBKG is the authority when it comes to cost seg. I have used KBKG and have attended their webinar as well. It is as real as it gets - talking to person, audit defense included etc. I had also considered and talked to the DIY Cost Seg. For essentially the same report, they charge double the amount. The only real difference is KBKG residential calc is only for property basis up to 600k for the price that's advertised. For more expensive properties, the cost is a lot higher because they do engineering based approach. DIYCostseg does all algorithmic even for properties/basis larger than 600k.

Feel free to DM, happy to connect. @Phil Clark

@Pratik Sheth Not sure its clear what you are asking. If your goal is to take the money and invest it anyway, then its generally better to do a 1031 that way you can differ your capital gain taxes in 2021 to a later date when you eventually end of selling the property. In theory you can keep doing 1031 forever until you pass the property down through will or other means. Bonus depreciation is to offset your taxes while you still own the property with something like Cost Segregation, when you sell it, all the depreciation will have to be recaptured to calculate the gain. 

If you are contemplating selling it, take the hit on capital gains but then offset those gains with something else - you would do that if you can show corresponding loss (passive or active depending on whether you qualify as REP). To come up with this loss to offset the gains from this property, you potentially need another investment property. Your primary home unfortunately doesnt qualify as investment property.

If its not making sense, you might want to read these topics. Simple search will yield several good articles.

@Victor Funes What kind of help are you looking for?

Agree with most being said here. It’s one thing to setup this complicated structure but it’s another to maintain it and to end it when things have to be settled. Best would be to regular estate planning from parents to heirs. If parents have to give equity and legal structures for kids and grand kids to allow them to spend time, that’s the first red flag right there of issues to come.