All Forum Posts by: Saran Mandhadapu

Lifting the thread to see if anybody can answer the questions I asked.

Saran

@Michael Plaks Thanks for the response. If I sell it to for example.... ABC LLC via Warranty DEED and ABC LLC only single member is XYZ LLC which is a Holding LLC where I and my spouse are partners (1065 return), in this case is SELLING to ABC LLC not considered a distinctly separate entity?

I don't own ABC LLC, it is 100% owned by XYZ LLC which I and my spouse own 50% each and get K1 at the end of Tax year. Does this work?

Thanks,

Saran

Hello,

By end of 2018, I would have owned my Second home for 5 years and have stayed in it for 2 years as Primary Residence out of the last 5 years. I am looking to convert that into full time rental property and also I want to void paying the Capital Gains Tax (500K for Married filing jointly), I have considerable equity in the home, I don't want to sell the property to others now and want to hold it for few more years.

From the Article below by @Brandon Hall, I see that I can sell this SFH to an LLC I own. This property still has Mortgage Balance so I am aware of the Due-on-Sale clause may get triggered by the bank. I have also seen arguments against using QuitClaim Deed, instead some people advised to use Warranty Deed which preserves the Original Title insurance.

https://www.biggerpockets.com/renewsblog/2016/08/0...

Questions:

1) The article says we can sell to an S-corp, why can't it be an LLC (that has not elected S-corp status), any Tax consequences?

2) If I SELL it, then I may have to payoff the Mortgage Balance and also pay the Transfer Taxes. When the article refers to SELL, does it just mean using a Warranty DEED and transferring the ownership from personal name to the LLC name?

3) If the SFH Title is currently owned by both Spouses, can the LLC be a Single-Member LLC with the single member being the Holding LLC which has both spouses as partners?

This topic may have been discussed before, but I appreciate if I can get updated information after the new Tax Bill and also if this is still a viable strategy to avoid Capital Gain Tax?

Thanks,

Saran

Hi,

I am looking for a Tax Accountant (CPA, EA) in Pennsylvannia with Real Estate Tax filing experience with reasonable fees to file LLC 1065 partnership and personal returns for 2017 tax year. I have 3 rental properties in a LLC with a holding LLC company.

Any recommendations? Looking for someone close to Philadelphia area (PA, NJ, DE etc)

Thanks, Saran

@Craig Bellot -- I will try to do that.

   @Giang Nguyen Exactly, I can do the showings since l live next door. This is an area where the monthly rents are $1600 plus (not $600), so I was thinking that paying someone $1600 for tenant screening is too high.

Hello,

I am looking for Leasing service (Tenant Screening and communication with Tenant) for a SFH rental I have in Philadelphia suburbs (Devon, PA). I live right next to the rental property and I can conduct the showings. I don't want to pay one months rent as a fee, all I am looking for is a middle men to get application from Tenants, qualify them (using one of the online tenant screening service) and place them as tenants. Do you guys know any realtor or a company in Philadelphia area that can provide this service for a reasonable amount?

Thanks,

Saran

Great, thanks Logan. Actually I am not self preparing, it is done by an EA. He listed my personal address for the dummy LLC which I did not like so I posted here to get clarification. I have asked the EA to remove the dummy LLC from form 8825.

Great, thanks Logan. Currently this is how it is listed (see image below). The Holding LLC name and EIN is listed at the top. Then for each property the single member LLC (example Main St LLC) name, its EIN number and the Rental Property address is listed.

I think you are right, the form is only asking for the Physical address of each property and does not ask for it the name of the LLC on which the Title is held.

Please confirm.

Thanks Logan. So you do not put the name of the dummy LLC at all in form 8825? You just allocate the $275 expense in this case to either the other single-member LLC which owns a property or the holding LLC, is that correct?

Question - Do we need to list all the single member LLC's in form 8825 (if that single-member LLC owner is Holding LLC) even though the single member LLC does not own any properties at this time?

I am asking because in form 8825, it is asking to list all Rental Properties with addresses, so in the case of the dummy LLC, it does not have any properties at this time.

Thanks,

Saran