All Forum Posts by: Steven Hamilton II

Precisely

Based upon your questions I'd strongly advise finding an accountant to work with. You sign a tax return under penalties of perjury. It is not something you want to prepare incorrectly.

I will second Jake's statement. Anyone can decide they want to do bookkeeping and we've seen some horribly messed up books by so called professionals.

That said if he is not at the point where he is capped it is benenficial to look at it to build up a bank of passive losses against future income. 

Thank you guys for the recommendation. 

There are some items that can be proven via statements; however, for many such as a rehab you will want your detailed receipts. There is also a thing called and NRP Audit. Where they will specifically be allowing items based upon receipts and documentation. 

Actually that is not correct. You do need receipts. You have to prove what the expense was actually for. If you go to home depot and spend $500 on materials, but don't have the receipt, how would the IRS know you did not purchase a new grill or patio furniture for yourself. You as the taxpayer have the burden to prove you are entitled to deductions. There are some items that are reasonably assessed(insurance, RE Taxes) from what is provided; however, the general rule is to keep all of your receipts. 

How do I know this? I typically represent anywhere from 25-50+ taxpayers in audit at any time. Most of them filed their own tax return or are referred to my firm. 

Kevin,

You will want to hold them separately. The best financing options will not be through an entity. 

Here is an article on the topic. DO NOT HOLD RENTALS IN A CORPORATION. If an accountant recommends this you should run. 

https://www.biggerpockets.com/member-blogs/7496/90116-9-reasons-its-dangerous-to-hold-real-estate-in-a-corporation

@natalie and @Linda covered this perfectly. as a side note this is literally been one of the most difficult tax seasons for all accountants out there. We've had the stimulus we have had PPP loans EIDL loans, our phones have been ringing off the hook with questions about it people who aren't our clients are asking for help so chances are if they were cold or distant all they might just be a little stressed out.

As for the due date I can tell you my firm we default our due date to the latest the IRS allows us to pay this is simply because most clients do not want to pay prior and setting up and auto debit allows them to keep the money in their bank longer.

This year we've noticed several returns get hung up in the IRS system and just saying processing I have one that we filed on February 15th that is still saying processing and we can't get a hold of anybody to find out what's going on.

You are making an assumption that the assistant dealt with everything they may deal with communications for the accountant so that way they can work on physical work on tax returns.

As a BP OG (or so I've been called in the past), I was a moderator for a long time.  I stay rather busy here advising members who have questions. I even have other accounting professionals here who come to me with their questions. This website has driven quite a bit of business for me and has accelerated my real estate portfolio as well.