All Forum Posts by: Tzvi Nussbaum

My buddy and I are each selling a property from different LLC's. He has his own LLC and I have my own. We have never partnered together before. We are trying to purchase a large property with agency debt. Fannie and Freddie require us to take title in a single entity LLC. Each relinquished property has to go from the same LLC/members to the same LLC/members. How do we get this done?

Thank you Yonah. My CPA said that since I am 50% owner of the LLC's, that only half would go against the W2 and the rest as suspended losses.

I see. That's helpful. Thank you. I did mention to my CPA that I would be selling 2 properties in 2019. Are the suspended losses on a property by property basis, or by LLC?

I was informed that since I am a physician, it would be difficult to prove, in the event of an audit, that I do more hours of work as a real estate professional than I do as a physician.  

Yes.  I am filling as a passive investor, which I understand will result in suspended losses and not come off my W-2 income.  Under 163(j), those suspended losses are minimized which creates a larger tax burden when I sell the particular property.  I wasn’t clear as to if being an active investor (“real estate professional”) versus passive investor has any baring on whether I need to file 163(j) or whether it is my request to do a bonus depreciation that resulted in my CPA filing 163(j).  My CPA depreciated about $30K under bonuses depreciation.  I carry about $2.5M in mortgage on investments and therefore would fare better deducting 100% of the interest and forgo the bonus depreciation and perhaps cost segregate next year.  Does this sound correct?

That’s is I file passive and my wife as active.  We file jointly.

My wife qualifies as real estate professional.  I work a full time job and therefore even though I work over 1300 hours a year doing real estate, my CPA suggested filing as passive.  I own 6 single residential properties and 3 small commercial multifamily Properties.

I actively participate and far  exceed the 750 hour requirement, but as I work a full time job and a high wage earner, my CPA suggested I file as Passive and my wife as active.  We file jointly.

Thank you for your prompt response. My wife and I are each 50% owners in our multiple real estate LLC's. I live out of Charlotte and would be interested in a phone consultation. CPA says my deadline is this Friday.

I recently reviewed my taxes prepared by my CPA. I discussed with him the option of bonus depreciation.  He asked for specific cost items.  These included HVAC, roof, fire alarm and security system, cost of beds, furniture and appliances.  Are these the only items that qualify for 100% bonus depreciation?