All Forum Posts by: Jake Hottenrott

@Carol D. - From a tax perspective, it sounds like overkill. Personally, I have a Series LLC, with each cell having it's own bank account, ein, books, etc. but we roll everything from the cell up to the main Series LLC and file one tax return. The idea of filing each on its own tax return would get prohibitively expensive and likely kill any benefit that couldn't be had from a substantial umbrella policy. To each their own on a legal perspective, but from a tax perspective, I'd happily do it for a Client if they in$i$ted on it $$$$, but I would have a hard time recommending it myself.

@Chris Harjes - You are welcome!

@Scott Mac - I pushed to market my practice (Hottenrott & Associates) as the Hott *** CPAs and my wife vetoed lol

@Chris Harjes - If you are looking for local, I'd recommend @Natalie Kolodij, the Real Estate Tax Strategist.  She's right in Charlotte, knows NC laws and will do a great job for you. I'd definitely look to see about setting up a consult, I'm not sure if she's taking new clients, but if she is, I'd try to get on her schedule! I typically don't have a local recommendation, but what I do, I'm happy to share it! Good luck!

I don't have a local recommendation for you, but I would recommend looking around BP for a tax pro/tax adviser. There are many great tax pros out there who work virtually with clients from coast to coast and work mainly with real estate investors. Most can do their work through email, document sharing, client calls and skype/video if you want face to face communications.   

The best way would be to schedule consultations and get a feel for if their communication style works with yours.

Best of luck!

@Andrew DeBlock - I wrote a blog post about this on BiggerPockets way back in 2016, but I think it gets to what you are wanting to have answered.  

https://www.biggerpockets.com/member-blogs/5926/53215-questions-as-common-as-the-cold---llc

Take a read and let me know what else you have questions on!  Welcome to BiggerPockets!

@Zachery Potts - Congrats and welcome to the Real Estate game!   Keep reading, learning and asking questions and you'll be successful.

This is a great question and I'm glad you are thinking about taxes before starting your journey but it's a hard one to answer in a forum.  This answer is specific to your personal situation (income, marital status, withholding, and many many other variables.)  I'd recommend talking with a tax professional and booking a consult to talk about this particular question and any other questions you may have as you start your journey.

If you need help finding a tax pro, I'd look right here on BiggerPockets.  There are many experienced Real Estate tax professionals who know this specific niche, but are also investors themselves.

Best of luck!

@Miguel Ochoa - great question! An investor has to pay taxes where the income is generated as well as their state of residency. There are state tax credits and offsets that help to alleviate double taxation, but the general gist is that at the state level you'll pay taxes at the rate of the highest tax state whether that's where the income is generated or where you are domiciled. This is a great conversation to have with your CPA to help you plan where to move and where to invest and what your true ROI is! Best of luck!

@Robert L. Congrats on selling the home and owner financing it! The cash method Vs accrual method refers to the income recognition portion of the accounting. You will still need to record the note, but will only recognize the interest income as you receive payment vs recognizing it on a schedule whether you receive the payment or not. Best of luck!

@Nathan Hall - Congrats on building a portfolio of investments!  I don't have a local recommendation for you, but I would recommend looking around BP for a tax pro/bookkeeper.  There are many great tax pros out there who work virtually with clients from coast to coast.  Most can do their work through email, document sharing, client calls and skype/video if you want face to face communications.  

The best way would be to schedule consultations and get a feel for if their communication style works with yours.  

Best of luck!  

@Ali Garced - My recommendation is to find a few pros who specialize in real estate investing (many of the pros on here do just that) and arrange a conversation. You can get a quick feel to see if that is someone you'd like working with, how they like to communicate and if you are a good fit to work together. Additionally you can read their posts here to see how they get voted on by other tax pros and if they are able to cite real world cases and tax law to support their positions.

I wouldn't limit my search to local, unless you are someone who HAS to have a face to face meeting every time you meet with someone. Many of the pros here work virtually with clients throughout the US. Also, a local tax pro might work with everyone and any type of tax situation that walks through the door. They might know enough about real estate tax to be passable, but they might not have specialized knowledge that will really get you the bang for your buck that you are looking for.