Contractor · Oakley Ca · Member since 2018 · 2 posts · 0 votes
Hey BP,
Can anyone recommend a real estate savvy CPA in the Brentwood area? I am in contract on my first flip and would like to get more in depth with tax strategy or a possible 1031.
Attorney and CPA · San Diego, CA · Member since 2017 · 590 posts · 422 votes
8y
@Jared Nielsen try reaching out to @Logan Allec who is a knowledgeable CPA based out of LA. You can also reach out to @Brian Schmelzlen who is a JD-CPA combo based out of San Diego. It’s probably more important that you find a CPA knowledgable about real estate than one in your area if you’re willing to work via phone and email. If you need additional referrals, let me know. Good luck!
Attorney and CPA · San Diego, CA · Member since 2017 · 590 posts · 422 votes
8y
@Jared Nielsen try reaching out to @Logan Allec who is a knowledgeable CPA based out of LA. You can also reach out to @Brian Schmelzlen who is a JD-CPA combo based out of San Diego. It’s probably more important that you find a CPA knowledgable about real estate than one in your area if you’re willing to work via phone and email. If you need additional referrals, let me know. Good luck!
Accountant · La Mesa, CA · Member since 2017 · 477 posts · 476 votes
8y
Hi Jared,
One of the few drawbacks of a flip is that the property is considered for tax purposes to be inventory. Unfortunately, inventory is specifically excluded from being part of a 1031 exchange.
There are other tax strategies that you may employ, but that one to defer your taxes will only really work with buy and holds.
Contractor · Oakley Ca · Member since 2018 · 2 posts · 0 votes
8y
Brian,
I currently am purchasing the home through a hard money loan. Would you recommend trying to refinance the home into a conventional mortgage and renting it for a year?
I currently am purchasing the home through a hard money loan. Would you recommend trying to refinance the home into a conventional mortgage and renting it for a year?
It depends upon the gain and the rest of your tax situation. My recommendation would be to meet with a CPA and get an accurate idea of what the taxes would like under a few different scenarios.