All Forum Posts by: Audrey X.

@Martingale Kim

Have you called the 1800 number first thing in the morning? I got one of those letters too for my 2019 partnership return, I mailed timely but due to covid the paper return wasn't processed timely and the computer assumed it was filed late. I called the number early in the morning and got through to someone within 10 mins. I explained what happened and I had a copy of my mailing receipt. I always pay for certified mail with tracking, best $5 I will ever spend. The IRS rep asked that I fax the mailing receipt. She stayed on the phone with me and confirmed receipt and immediately waived it. If you don't have proof of mailing, you should still call and explain the situation. This is happening to a lot of people, they are aware and may just waive it as a first time late filing courtesy, especially if you have always filed on time. They can see that when they pull your tax EIN. Definitely call before you pay. In the future, always do certified mail or e-file through an accountant. Good luck.

@Carl Kallgren IV

As a tax lawyer myself, I suggest you talk to an accountant first. You'd be surprised how many incompetent/inexperienced lawyers there are our there. An accountant specializing in real estate has industry experience. They can easily handle any questions you have for a first deal.

@David Smith

Most condos have rental restrictions. Can't have more than 20% rental due to warrantability for mortgages. Check the HOA governing docs.

I ended up using a company called Atlas 1031. Very fast turn around. I had to remind them a few times of deadlines but they did a good job overall. They didn't run away with my $ so that's a plus. Lol. http://www.atlas1031.com/

@Xavier Cabo

Hi Xavier,

A buddy of ours does high-end millwork including custom closets. He's currently building a custom wine closet for us in ATL. Highly recommend.

@Elijah Wichers

Sounds like a recipe for bankruptcy. If you don't have the $ to avoid PMI, it is too risky to acquire multiple properties. It costs $ to maintain properties after you buy them. All your cash flow will be eaten up by PMI and you won't have adequate capital for unexpected expenses. Don't make the rookie mistake of overleveraging.

@Andrew Chong

Just remember your capital will be tied up for at least 6 months before you can refinance.

@Jose Contreras

Real estate investors have plenty of federal tax benefits as is. You just don't understand it.

Trust a professional. If something sounds too good to be true, it probably is a scam. Good luck.

@Jose Contreras

Your CPA is correct. You are not a "real estate professional" for tax purposes. That is a defined term in the tax code, not your every day jargon.

Don't try to use real estate to reduce your taxable income on paper. That's tax evasion. If you have a profit, pay the tax.

@Mike Adams

Active participant rule: A taxpayer who is an “active participant” in rental real estate may use up to $25,000 of loss to offset non‑passive income. This exception is phased out for taxpayers with a modified adjusted gross income (MAGI) between $100,000 and $150,000 for the year.