All Forum Posts by: Sean Graham

@Patrick Shep the STR Loophole is a great strategy. Do either you or your spouse qualify for REPS?

Cost segregation could potentially help you out. Suspended losses from cost segregation are released and can be used to offset ordinary (W2) income when a property is sold. Something to keep in mind. Happy to explain further. 

@David Miller I think it's reasonable to work with a CPA remotely. Happy to make introductions if you need. I have properties in Chicago, but my tax CPA is in Michigan. 

@Rashad George I have a couple tax CPAs I am happy to introduce you to. Also, I highly recommend looking into cost segregation on your LTR if you haven't already

@Alfredo Cardenas great questions! Once you qualify for REPS, prior year suspended losses can be used to offset current year ordinary income. So as you stated, you can use prior year suspended losses to offset your current year capital gains.

Yes, you can cost segregate current year properties to offset your current year W2 income as well.

If you spouse correctly follows, documents, and qualifies for REPS, then you won't have an issue even if you are a high income W2. Especially given the fact that she's a full-time real estate agent, you shouldn't have any issues.

I personally like using my calendar (i.e. having clear appointment related to real estate) combined with a simple Excel / Google Spreadsheet as the tracker. It doesn't need to be fancy. I recommend having a column that tracks which properties or activities the time relates to so it will be easy to sort in the future. 

Are these all long-term rentals & SFHs?

Nothing wrong with working remotely with a CPA. I DM'd you with my email if you'd like an intro. 

@Helene Goodworth I don't have anyone in NY, but happy to refer you to a couple tax CPAs that work remotely. Congrats on the investment properties! Are you doing cost segregation on them?

@Shawn Regnier these questions are great! Here is my take:

1. The STR loophole is all about "material participation". If the owner is truly materially participating and meets the requirements and it is short term rental then I believe it is a valid strategy. The IRS looks at your situation on a year-by-year basis. So if all requirements are met in year 1 then I don't see the issue

2. If the property is taken out of service and is no longer used as a STR rental or a MTR rental, then the depreciation benefits would end

@Marc Shin don't worry about the LLC. It's about material participation from you. Happy to answer any specific STR loophole questions for you as well

@Salvatore D'Agostino what does your real estate portfolio look like? What asset classes do you focus on? I’d be happy to chat with you on any specific questions 

Look into section 179