All Forum Posts by: Kumar R.

Thanks @Nicholas Aiola

Hi @Nicholas Aiolak

question on material participation for short term rental.

I have read that spouse hours can be counted in material participation separately if both are doing contributing by doing different work. To consider spouse hours do they have to be in the title of the property OR as members/managers of LLC that is holding the property? From IRS perspective is there any such requirements to be fulfilled to have spouse hours counted?

Thanks in advance

Kumar 

@Nicholas Aiola Thank you very much, will schedule some time with you.

@Nicholas Aiola question on cost segregation and bonus depreciation on short term rental. 

I will be closing on a short term rental in the last week of December 2021, but the property management company wants to continue to be in service till end of the year. If I had received the property couple of weeks earlier, I was planning to self manager to qualify for  "100 hours material participation test" OR  "substantially all participation in the activity" test. But both may not be possible.

If the closing happens in Jan 2021, will I be able to qualify for 500 hour test if I self manage and do cost segregation and take bonus depreciation when filing taxes in 2023?. 

If the closing happens in last week of Dec 2021, and will not be materially participating till Dec 31st 2021 due to property management policy, how can I take bonus depreciation?

Thanks 

Maybe there is no way out without SSN even with SS-4 form. Even if we responsible party to be LLC name and its EIN, there is another question 9a Type of Entity, which asks for SSN if this LLC is Sole proprietor.

Thanks

Kumar

Thanks Eamonn, I was not able to find any definitive answer on this, the information is limited. Let me try to fax SS-4 and see how IRS responds.

Hi Ashish and Eamonn, 

Appreciate all the feedback. For the same reasons you both mentioned like separate bank accounts, and legal protection,  I am planning to apply for EIN. 

When I apply for umbrella LLC EIN, we have to give personal SSN. For the LLC that are within this umbrella LLC would require a different EIN. When applying for this EIN, can I use responsible party as umbrella LLC and its EIN as SSN?

Thanks

Kumar

Hi,

I wanted to check how this entity structure works. 

If there is manager-managed umbrella LLC and have property LLC with member as umbrella LLC. Can we get EIN for property LLC using name, address and EIN of umbrella LLC. In the form SS-4 there are question on "Name of responsible party" and "SSN, ITIN, or EIN"

Thanks

Kumar

Thanks Sonny, I will reach out to KKOS

Newbie question for fellow investors.

Anybody has experience working with omnikeytexas.com for turnkey property in Texas. Starting out new as out of state investor. 

Another question is on LLC, I am in California and if I buy out of state property in Texas, Iowa, etc, which state do investors generally incorporate their LLC.