All Forum Posts by: Jake Hottenrott

@Ryan Nodurft - 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 thy 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 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.  

@Ryan Nodurft, congrats on your first fix and flip!  Hopefully it is as profitable as your hoped.

The basics of your transaction are to take the profits, less rehab and basis and each take 50/50.  (I'm sure you knew this).  From a tax perspective, you'll need to determine if a 1099-S will be issued to either of you at the time of sale for transaction.  If so, the one receiving the 1099-s will need to 1099-misc to the other partner.  You'll each report the sale and your share of expenses on your 2019 return.

As a CPA, I wholly recommend finding a tax professional that you can work with as you grow and can provide advice for you through this, your first transaction, as well as going forward.  A tax expert will be worth their fee in tax savings as well as headaches that they prevent for you!  Best of luck and congrats again!

@Rebecca Graziano, Welcome to BP!

You may want to reach out to a few of the tax strategist/CPAs/EAs on here to see about doing a consult and review of your personal situation.  

There are always a few ways to make sure that you are maximizing your deductions and minimizing your tax liability.  Some of those strategies may be limited being as though you are high W-2 wage earners, but it would definitely be worth it to get a professional look at your finances and tax situation.

Congrats on the investments and success!

@Tyler Labelle - Reach out to @Natalie Kolodij, she's in your area, works exclusively with Real Estate Investors, and has a great virtual practice set up to make communication easy with her clients from across the country.  Also, don't just take my word for it.  Check out her posts here.  Also, no promises that she's taking clients right now, but if she is, I'd schedule a conversation to see if you are a good fit.

@Chris M. - my advice is to find a few threads on here that are tax related and look to see the tone and educational nature of a tax professional on here.  You can figure out if it sounds like the ideal professional for you to work with.  Then, reach out to a few of them to see about a consult on your situation.  Interview them as much as you can.  Good luck!   

@Eran Withana - Look for value and not at the price.  If you are going to save $10K, $25K, or $100K by developing a tax plan when you first start out, a $2-5K outlay seems pretty insignificant.  You also have to look at a few different things.  Any CPA/EA/Tax Preparer can DO your taxes.  The value comes from the conversations ahead of time that minimize taxes by providing a framework strategy and an evolving pathway that changes with each conversation with your tax strategist and new deal that your investing career contemplates.

@Caleb Heimsoth - With all due respect and I do mean with all due respect, if an investor goes to the lowest priced or an inexperienced real estate investing tax it is just setting themselves up for headaches.  Many of the tax professionals on this forum are not "cheap" but can make a good fee for fixing situations where investors relied on poor advice from cheap advisors.

My conclusion is to interview a few and go with a professional that you feel comfortable with no only their fee, but also their personality, their experience, their reputation, and their willingness to not only advise you as you start your journey but provide education and planning for what type of investor you want to be.  Best of luck!

@Carolyn Morales - Congrats on starting your real estate investing AND being profitable!  There's never one right tax answer because of your personal situation and how the entity is currently set up.  

Definitely reach out to one of the experienced and qualified CPAs/EAs that post/lurk/contribute.  There are a few of us who invest as well and deal almost solely with real estate investors.  

Best of luck finding a strategy that minimizes tax for you!

@William Copeland do I have a doozy of a referral for you.  If you want someone local that is also virtual, @Natalie Kolodij just moved out to Charlotte.  You can find a lot of her posts on here and they offer great insight and value.  She's one of the pros on here that I trust to refer to and I think you'll find that out too by reaching out to her.  See if she has any available client openings and if so, have a conversation!  Best of luck!  

@Mike Moore - Read some posts by @Natalie Kolodij.  She's in your area and focused on Real Estate Investors.  You should check out her website and schedule some time (if she is still taking on new clients) to chat with her.

@Linda Weygant - What are these "breaks" you speak so fondly of? they sound nice.  

@Steven Hamilton II - You nailed it.  I'll try my best, but I hadn't had a chance to log into BP since Jan 23 of this year and I love BP.