All Forum Posts by: Ahad Ali

A CPA who has more real estate experience could potentially yield out a better return for you than an accountant without. It is circumstantial of course so it depends on what you have and are trying to do.

I would suggest browsing around this forum as well as your area and if your willing to, look into CPAs who can offer remote service.

You definitely need to speak with a CPA before progressing any further. While forums like these can have valuable information, they may not apply to you in the exact same manner. You should never go solely off of what these forums say, just use them as reference and information pool.

Hello Nito,

From what you have written, it sounds like you want to have a Series LLC. Essentially each business venture of yours would operate under its own LLC, all of which are then owned by a single main LLC which is owned by you and your partners (if you have any). This way you would only need to file taxes for the main LLC as it houses the others.

I would suggest just starting out simple for the time being for what you do have and make adjustments as you grow. I would also highly suggest speaking directly with a CPA or an attorney to go into further detail pertaining to how you want to structure your business ventures. They will be able to formulate a plan for you to make this entire process as easy as it can be. Consider looking around this forum for CPA's who you may be able to work with in person or even remotely.

I would highly suggest speaking with a CPA first and foremost before finalizing anything. While this forum offers great general advice, its best to speak with a CPA in detail before moving forward. I suggest browsing around to work with a CPA, be it in person or remotely, and find one who has experience with real estate. They may be able to help you get more out of this great opportunity than you expect. 

Hello Christian,

Firstly, congratulations! A great first step towards a hopefully successful venture.

I would suggest looking around this forum for potential CPAs to work with as they definitely have great real estate experience and can assist you in taxes and act as an adviser as well for future acquisitions. Also consider working with a CPA remotely and browse around before settling. Look at what they can provide to you and make your decision based on what you feel you need not only now but in the future as well. You want to find a CPA you can work with long-term who can be there with you as you grow.

I would suggest looking through this forum as there are plenty of great CPA's with tons of real estate experience that can assist you not only during tax season but beyond as well. Having a CPA available throughout the year is greatly useful as they can be a valuable adviser. Please also consider looking into working with a CPA remotely. Some may offer more than others and its always great to look around before settling.

I would highly suggest speaking with a CPA first before progressing too deep into this venture. They can not only assist you with tax planning to mitigate taxes due but also can help with advise on other aspects of real estate like bookkeeping, management, etc. Especially try to speak with a CPA who has experience with and/or specializes in real estate. They will surely help you greatly to get you on the track.

Personally I use a QuickBooks software to manage bookkeeping as it really simplifies the process greatly. An excel spreadsheet is also a great and free route to go, just a bit more time consuming and need to be very meticulous with the detail and organization. As you are just starting out it can be fine but if you expect to grow then I would highly suggest looking at a software to do your bookkeeping or find a bookkeeper to do it for you. 

You definitely have to report the rental income on your tax returns and pay taxes on it accordingly to how much profit you had for the year. However, there are a slew of expenses you could use to lower the profit even potentially yielding a loss depending on your expenses. Please speak with an accountant/CPA who has experience working preparing returns focusing around rental income. 

The state tax returns you will file for the LLC depends on where each property is located. If you have a property in New York, Ohio, New Jersey, you would need to file a return for each state. Keep in mind there is no Florida state tax return to file just the Federal Form 1065 to the IRS. For additional detail, please speak with your accountant/CPA for more in depth information.

It is circumstantial but generally an LLC would assist with separating the properties from other assets protecting them from any liabilities. It may not be necessary for 1 or 2 properties but could be highly useful. The kind of LLC set up you go for is also depended on various things. Some people prefer to isolate each property with its own LLC, others may prefer to have all the properties under a single LLC.

The question is obviously highly opinionated without one single answer as each individual person will feel differently towards how they want to protect their assets. I genuinely believe its best to explore all your options to find the most beneficial route to take whether that entails having an LLC or not.