All Forum Posts by: Simon Filip

@Joanna Lenn as you can see from the comments here something isn't adding up.  Best to go back to your tax adviser for some additional information.  If he cannot explain the reasoning behind the position, seek a second professional opinion.

If the reason to setup an S corp is to deduct your unreimbursed employee business expenses for your full-time job, that is likely wrong (I don't have all of the facts) and would not hold up under audit.

@Michael Plaks thank you for the mention. As a CPA that active in real estate taxation I have this to add..... price is important to a number of prospective clients; for some it may be the most important. Fee expectations should be discusssed upfront. Your CPA, EA or tax practitioner should share their fee structure whether it be value, project or hourly billing. The fee should never be a surprise. Open communication should set expectations and the prospective client can decide if the value meets or exceeds the cost. The tax preparer should propose a fee that makes the work profitable for them. This is a job/career/business for most of my fellow practitonsrs. It has to make business sense for the preparer to accept an engagement.

@Michael Plaksthe partnership should provide the necessary information in a K-1 footnote to it's tax-exempt members, similar to UBIT. 

See IRC 512(b)(4) for support.

If an LLC that owns leveraged rental real estate includes a partner that is an SDIRA, the rules for UDFI extends to those partners.

Miguel Jauregui - do you mind if I ask who you ended up using and if you were happy with the professional services!

As a CPA I find this thread to be quite interesting. 

 Although I handle at least one of these requests a month, I'm finding more requests with subtle caveats or special language they would like included. Just last week a client forwarded a template letter from the mortgage broker with language that "the CPA could copy and paste word for word." It included language regarding the self-employed taxpayer's solvency, which a is a big problem for CPAs, especially that are only engaged to prepare tax returns.

Third Party Verification Letters (comfort letters) are not new.  My advice to the CPA is to be comfortable you are not entering into an assurance or attestation engagement and consult your insurance carrier.  Most insurance carriers provide form letters that meet both AICPA criteria and have been vetted by the insurance carrier's attorneys who are well versed in the the legal liability exposure.

As a borrower try to determine why your CPA isn't comfortable with writing the letter. Perhaps he/she can request a form comfort letter (third party verification letter) from his carrier that will make him/her more accommodating  and agreeable.   

The IRS has a fairly user friendly worksheet regarding mortgage interest deductions calculations in Publication 936. https://www.irs.gov/pub/irs-pdf/p936.pdf

Jesus Canales be cautious. Property that you hold primarily for re-sale (short-term house flips and rehabs) may not qualify for 1031 because you may be holding the property as your inventory to re-sell it. Make sure you discuss with, whomever you work with. Private message me if you have questions

Chris L. and Jessica Zolotorofe New Jersey follows the federal laws with respect to Sec. 1031 like-kind exchanges. If you properly complete a Sec. 1031 like-kind exchange, NJ will respect the tax deferral for state tax purposes even if the property is located outside of New Jersey.

@Cedric Stout and @Marcos Torres would be happy to discuss further with you. PM me.