How to find a good real estate CPA in NJ?
Realtor · Magnolia, NJ · Member since 2020 · 17 posts · 43 votes
How to find a good real estate CPA in NJ?
3 Replies
- 4yBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
@Deniqua Antoine
Your profile mentions that you are a realtor + househacking.
If you are a realtor, you want to have a conversation to see if you are eligible for Real Estate Professonal Status(REPS).
Below is a sample of expenses that realtor's are eligible to deduct - MLS Fees, Home office, Mileage, Business Gifts, etcHouse hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion
Basit Siddiqi CPA4.979 Reviews - Realtor · Magnolia, NJ · Member since 2020 · 17 posts · 43 votes4y
Originally posted by @Basit Siddiqi:
@Deniqua Antoine
Your profile mentions that you are a realtor + househacking.
If you are a realtor, you want to have a conversation to see if you are eligible for Real Estate Professonal Status(REPS).
Below is a sample of expenses that realtor's are eligible to deduct - MLS Fees, Home office, Mileage, Business Gifts, etcHouse hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusionThanks so much for your reply I’d love to connect with you ASAP. I just messaged you!
- Lender · Member since 2019 · 141 posts · 5 votes4y
Originally posted by @Basit Siddiqi:
@Deniqua Antoine
Your profile mentions that you are a realtor + househacking.
If you are a realtor, you want to have a conversation to see if you are eligible for Real Estate Professonal Status(REPS).
Below is a sample of expenses that realtor's are eligible to deduct - MLS Fees, Home office, Mileage, Business Gifts, etcHouse hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusionThank you for such a thorough reply, Basit.
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