Hi friends, I'm looking at Cozy and had a group question about the 1099 they report to the IRS after you hit 20k in received rents.  

My consultant is telling me that the IRS will want me to hire a professional to do so and it will cost a lot of money to do so.

One way to look at is that the IRS knows we need those accounts, and that's why we get the depreciation deduction.In terms of cash flow per unit, I only do small multi families, so I can't speak for large apartment buildings, but depending on acquisition costs, anything less than $400 per unit per month in cashflow (after maintenance, vacancy, and CapEX) wouldn't really make sense for me in my market. 

As I understand it, if you live in the house for 2 years out of the last five before you sold, you get to avoid capital gains tax, so long as you bought as a primary residence, but the IRS doesn't care if it's the first two years or the last two years, so long as it was purchased as primary residence and not an investment property initially.So what happens if you lived in the property the first 2 years, then rented it for 4, and move back into it for 2.

It is a diversification move, and nothing else.It is very easy to use a self-directed IRA within the IRS guidelines, so long as you make sure to be aware of those guidelines.  

The easy answer is to read everything the IRS provides.  

Owner 3 made payments for a short while, then quit making any payments and managed to get 3 separate liens on the property (IRS, Dept. of Health Services, and Mechanic's Lien) then abandoned the property. 

@Johannes Schunter - MACRS 200% DB is the short name for using the Modified Accelerated Cost Recovery System (MACRS) using a 200% Declining balance - it's the same depreciation methodology you use on your tax returns.Here's the IRS Depreciation Guide => https://www.irs.gov/pub/irs-pdf/p946.pdf@Ariel G. - My theory is if I buy a stove, and it has a 7 year life, I can reserve the entire cost of the stove over those 7 years. 

Your homestead is protected from most creditors, except mortgagor/Property tax delinquency/IRS.  

We've invested in the area for a few years now, happy to hop on a phone call or grab coffee to discuss after the holidays if you'd like.