All Forum Posts by: Steven Hamilton II
Steven Hamilton II has started 25 posts and replied 5111 times.
Post: Filing a 1065 Partnership return Husband/Wife vs Schedule E
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Quote from @Christina Weaver:
Thank you.@Steven Hamilton II I want to mention that My husband and I both reside in California, and I manage the property remotely from California via Zoom calls, and also physically visits the property. Whether To file a 1065 partnership return or being treat it as a disregarded entity, Is the determination based on the location of the property or the owners' residence state?
Additionally, for the AR llc, do I need to register the LLC in California as a foreign company? I heard there's an $800 franchise fee yearly.
Thank you.
Doesn't matter as AR is not a community property state.
Yes, you need to register it in CA.
Post: Filing a 1065 Partnership return Husband/Wife vs Schedule E
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Quote from @Christina Weaver:
Hi, @Steven Hamilton II my husband and I live in California, a community property state. We own 100% of LLC that is in AR. Do you suggest file 1065 or be treated as disregarded entity on schedule E. I also would like to reduce the audit risk due to large bonus depreciation. If we file 1065, do my husband and I need two separate k-1 or we can have the same k-1. thank you.
Post: Wanted CPA that specializes in Real Estate in California
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Post: Bonus Depreciation and My CPA’s Advice
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Quote from @Kyle Swengel:
@Bernard Reisz I just read the post from @Michael Plaks and it was very informative. Thanks @Michael for putting that together.
I asked my CPA to sit down and go over the math and the pros and cons for my specific situation and portfolio. They basically said they were too busy for consultations right now and to take their word for it. But I still think with the high NOI that my peppery brings in it could really help, even though I am not a tax professional and it's not a STR where I could apply it to mu W2 taxes to push those down.
Depending upon your situation, it does matter. And it may be worth it to carry over those losses. Many of us accountants will actually run the numbers with you and we partner with engineers as mentioned. That is a reasonable price point to look at. Cost Segs are not as expensive as they used to be.
The response they gave you was not appropriate. Reach out to one of the accounting firms listed here: https://www.biggerpockets.com/...
Post: CPA or EA For Self-Direct CA 568 Filing
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Quote from @Namit S.:
Hi @Steven Hamilton II, just wanted to check that you are based out of Illinois but do help customers with filing California forms? CA 568 in this case?
Yes, we have clients worldwide.
Post: Deloitte vs Local CPA: Which Tax Service is Best for You?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Chances are it may not be correct anyways from Deloitte, we fix a lot of issues that come out of other firms large and small. Jeff is correct in that the planning you will get from there will be minimal. Any decent accountant is charging for tax planning. Our time and knowledge is our commodity.
There are several accountants here who can definitely help you out such as @Natalie Kolodij or @Jake Hottenrott
Post: Looking for a tax professional to
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Not very many people I'd refer you to for trusting that situation. I would tag @Natalie Kolodij and @Jake Hottenrott
Post: How to Claim Passive Losses without getting Audited
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Typically that would be an office or field examination. I do a ton of audit representation. I handle 25-50 open cases at any given time. The average exam is 3-9 months from open to close.
Post: How to Claim Passive Losses without getting Audited
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Quote from @Shadonna N.:
What is the STR loophole? How do you handle a situation where you have repairs where the tenant cannot live in the property until the repairs are made. When the tenant leaves is the property considered out of service and those expenses are depreciated?
STR properties that have an average length of tenancy of 7 nights or less qualify as non-passive rentals. Therefore if the required hours are put in, then you may be able to use the losses to offset your non passive income such as W-2 wages. That is still in service, those will have to be determined if they are repairs or improvements depending upon the project and its effect on habitability as well as material that was existing in the property prior.
Post: How to Claim Passive Losses without getting Audited
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,271
- Votes 2,325
Linda and Natalie are correct. End of story. They understand this backwards and forwards. You should strongly consider paying for competent guidance like theirs.
Tax is not plain English. It is definition built upon definition... etc. An audit can happen even if everything is correct. I carry a caseload of 25-50 open IRS audits. Everything here is discussed regularly in these cases. And it can mean some huge adjustments in the case of those who interpreted incorrectly.
You claim what is true and accurate, not what you think will avoid audit. Failing to claim expenses can lead to mortgage fraud or even major tax issues if you get certain refundable credits.
Not worth my time to comment further. Natalie and Linda nailed the replies perfectly. Your understanding is not that of an expert who has studied tax law. They took their time to give you guidance at no charge. That was kind of them.