All Forum Posts by: Alex Turchetta

@Frank Patalano nice! Gives me hope to to invest here! Lol

@Frank Patalano where in Providence do you invest? I havent seen much of anything great in the Providence area except for multifams in sketchy neighborhoods. I bought a 2 fam in Cranston, knightsville area in 2016, but since then prices have gone up unfortunately

@Edward Liu you buy in the providence area? I live in Cranston (5 minutes away from Providence) and from what I’ve seen there is only multi family units in rundown/ high crime areas for prices that around the 150k range. Are you looking at something different?

@Ashish Acharya all good points Ashish. Thanks for elucidating some of these concepts for me. The only thing about my student loans is that they’ve grown exponentially since ive been in school and are now to the point where they will never be paid back in full. I’m in a repayment program which allows me to pay 10% of my AGI per year for 20 years (10 years if i work in an eligible 5013c nonprofit company) and then the loan is forgiven. So im more just waiting out this prison sentence of a loan rather than looking to pay it back at this point while trying to minimize payments as much as i can.... thanks again for tour help.

@Michael Plaks hmmm ok. I’ll have to talk with my cpa about how to work this. I do a lot of other things for this company not related to my professional psychology services as well, for example i’m in charge of marketing for the company as just one of my duties but I don’t really get traditionally “compensated” for that role. It’s oddly structured and I need to sit down with a professional tax planner to map this all out i guess

@Steve Hodgdon i am indeed!

@Victor N. Thanks victor that was helpful. So in essence the natural tax advantages real estate provides can help lower my AGI.

@Wayne Brooks yea thats another problem. Im not sure how to keep my AGI low and still be able to invest in real estate as I’d like to

I had an interesting question for my cpa friends on here. My situation is slightly unique as real estate investing is slightly difficult due to my student loans. I have an exorbitant amount of student loans and my monthly payments are based off a percentage of my adjusted gross income. Therefore i try to put as much as I can in my SEP IRA in order to lower my AGI. As you can imagine this leaves little extra cash to invest in real estate (outside of my SEP which i dont want to do). I am paid as a 1099 employee (im a psychologist) and ive created an S-corp business for tax purposes for this 1099 income. My question is that if I purchase real estate through my S-corp (or create a different LLC/s-corp to purchase real estate) would that look like a loss/ expense in terms of my overall income from the S-corp and therefore lower my AGI? Im thinking that if I create a "real-estate investment business" and i make a down payment purchase on a home that would be a business expense and therefore subtract from total profit. I'm not sure how this would work and i am likely oversimplifying it. I am going to run this by my cpa but i thought i would put it out on this forum first to see what information anyone had. Any insight would be appreciated. Thanks in advance!

@George Blower That was helpful. So basically you cant refinance a property owned by the 401k with an outside loan. Good info. Thanks!