I am currently looking for a tax professional that is familiar with tax laws in multiple states.
My goal to to invest in real estate through out New England as well as other states through out the country.
If anyone has any referrals, experiences to share (positive or negative), or think you are a suitable tax professional yourself, please feel free to reach out to me!
Besides New England, what states are you interested in?
What is your real estate investing experience like? Brand new, experienced?(i couldn't tell from your profile).
If you are brand new - I would suggest focusing on 1-2 areas as you start. I would look at areas that are within 1-2 hour of Boston, MA or an area that you lived in previously. This provides you a competitive advantage over others since you should know the area better than others.
I think it is safe to venture off to other areas after you obtain a couple years of experience under your belt.
In regards to investing in multiple states.
If you invest in rental properties out of state in your own name; you would be required to file a non-resident state return in the state that you invest in. If they do not have an income tax - you may be not have a filing requirement.
You would also report the rental income in the state that you live in. You would get a credit for taxes paid to the state that the property is located in(if they calculated a tax). This avoids/limits double taxation at the state level.
Some great things about investing out of state is that you may be able to structure your travel as a deduction and enjoy a day or 2 on uncle sam.
@Ryan Eisenhauer I'm not a CPA myself but I'm a consultant at a CPA firm based out of Woburn that does a ton tax of work for Real Estate investors in state and out. I run all my questions through a few people in my office and am always impressed by the advice. They've even turned me on to some tax savings strategies that I'd never heard before related to depreciation and cap ex that looks like it could some big money long term.
Shoot me a PM if you're interested in me connecting you with someone.
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