All Forum Posts by: Sebastian Cifuentes

Hi Loren, Zachary, and Benjamin,

Thank you for your responses. I've realized I omitted an important detail regarding the proceeds and my initial thought behind forming an LLC. I manage a short-term rental in San Diego and am considering integrating my in-laws' STR under this operational model to reduce taxable income.

Establishing an LLC seemed like a way to merge our business accounts, potentially decreasing taxable income from our STR by accounting for expenses from an added unit. However, based on our conversation, this strategy might unnecessarily complicate things.

As a 1099 contractor, can I deduct all upfront expenses for the STR upgrade, as I did with my San Diego property?

Hello everyone; I’m reaching out to the community for some guidance and would greatly appreciate any insights you could share. Here’s a bit of background:

My in-laws own a condo in Maui that a large management group has managed until now. They've decided to part ways with this company and have asked me to manage the property on their behalf. (STR)

I'm researching the best and most straightforward ways to structure this arrangement from a business and tax perspective. The in-laws want simplicity since they have no interest in managing the unit.

From what I understand, it seems logical for them to handle the required taxes (TAT & GET) and compensate me via a 1099 form. However, I've also considered establishing an LLC, possibly in California. Still, I'm concerned about potential tax complications given the property's location in Maui, my residence in California, and my in-laws living in Washington.

Am I overlooking anything crucial here? Does anyone have recommendations or thoughts on approaching this situation for ease of management and tax efficiency? Thank you in advance for your help and insights!