All Forum Posts by: Taylor Brugna

Jennifer Montgomery S-Corp is generally best for flipping because only the reasonable salary that you pay yourself will be subject to Self employment taxes.Good luck!

Jim L. Make sure you speak with a pro before selling your rentals. If you're not interested in 1031 exchanges-making sure basis is calculated correctly is very important (adding improvements, subtracting depreciation, etc). Depreciation recapture will also be something to consider. Good luck!

Garvin, Nice work setting up a reserve fund-always a good idea to set aside a percentage of rents for major repairs and vacancy. I sometimes struggle with this because I want to buy more units! The amount set aside is not deductible. When a specific expense is paid, it then becomes deductible. Vacancy isn't something that's deductible in the sense that it's a line item on schedule e-it comes in the form of less rental income. Hope that makes sense.

I think it really comes down to your personal situation, but in our current IR environment I would take 100 year financing like Disney did if I could! The less money you are sinking in to a property on a monthly basis, the more you're able to invest elsewhere. At these rates, the ability to invest the extra cash flow elsewhere is generally more valuable than saving some tax deductible interest expense. As previously mentioned, most of the time there is flexibility to make extra payments towards principal if desired. On the other hand, if you are comfortable in your current situation-maybe the extra risk of being highly leveraged is not worth chasing higher returns.Hope this helps!

Lindsey Leemis you wouldn't be subject to capital gains in this situation (see IRC section 121 exclusion). You can allocate a percentage of your home to be treated as a rental and split the common expenses based on that allocation-except for when you make repairs directly to those rented rooms (paint, etc) as those can be 100% expensed. Depreciation would be allocated also. Hope this helps

Brad, I would absolutely recommend quickbooks for most investors. It has the a feature called "class tracking" which allows you to track he income and expenses by each property separately. When the time comes to generate a P&L, you can generate reports by class. Hope this helps.

Highly recommend Vcorp Services

http://www.vcorpservices.com/professional/index.php