All Forum Posts by: Basit Siddiqi

A lot of misinformation in this post...

If you have a rental property, you can ALWAYS write off the expenses that you incur.
The expenses will offset your rental income. 
If your expenses exceed your income, you are in an overall loss position.

If your Modified adjusted gross income is above $150,000, your rental loss may be considered passive. There are some exceptions to this but this is the general rule.

The $150,000 hurdle shrinks to $75,000 if you are married but filing a separate return.

Creating an LLC does not suddenly bypass this.
In actuality, you created another filing requirement which your CPA will charge you an extra cost for. 

Be aware of who you interview as your accountant.

If the STR is placed into service at the end of the year, they can use the paper-loss from the STR to 'potentially' offset other forms of income such as wages, interest, dividends, etc.

Best of luck

If you are living abroad, you want to work with a tax professional who understands the foreign tax credit along with certain reporting requirements if you have foreign bank accounts / foreign entities

If you are working abroad on a long-term basis, you might be eligible for the Foreign Earned Income Exclusion(FEIE)

Best of luck ot you in your serach.

$500,000 after taxes is likely close to $325,000(maybe more or maybe less).

Assuming cash-flow from rentals is offset by depreciation, you would need $325,000 of annual cash-flow from the rentals.
If you can get $200 / door / month
You would need 135 doors

You can work on this type of math to figure out how much rentals you need.

Be mindful that rentals require some type of work. I might even consider just doing equities. While this is less tax efficient, it would be less work / less stress.

The cost of the services will depend on how you have the various businesses structured.

If you have one LLC holding the rental and another LLC doing the flips / realtor business, it will require two separate accounting files.

The cost will also depend on how many transactions you have on a monthly basis along with the amount of acconts that you use.
Bookkeeping for someone with 50 transactions per month will cost more than someone with only 10 transactions. Furthermore, the bookkeeping will more costly if you have to link 10 accounts over someone who is using 2 accounts.

Another personal tip is not to have personal transactions running through the accounts that you are doing business transactions. It will make your bookkeeping much easier.

More bank accounts will require more accounts to be connected to your accounting software.

I personally don't like to have a checking account and savings account for each property(If you have 10 properties, that means 10 checking accounts, 10 savings accounts, 10 account numbers to remember, 10 checkbooks, 10 debit cards, etc)

However, it will make using the class function easier when you do your books.

Best of luck.

I suppose his question is if he is able to have deductions against the income earned through the notes.
I.E. Costs of set up of Trust, Costs to attorney to set up note, monthly costs to service the mortgage.

Just my guess.

My thoughts are if you have reached the level of a trade or business, then yes, these costs would be deductible.

College isin't so bad - you might even be able to negogiate going part-time so you can focus your other time on working / building connections.

If you are focused on real estate, maybe choose a career that you feel will advance you in your real estate career.

You mention wanting to give your parents money to show your appreciation. However, I think they would prefer to see you being sucessful over wanting to receive your money.

Best of luck!

If you acquire the property in the middle of November(Assumption of November 15th), you will need to clock in about 2 hours a day.

You might be able to log in a lot of the hours as you furnish and rehab the property leaving you with 30-minutes / 1 hour towards each guest check in / check out.

It is do-able but obviously, sometimes, the more time the better.

Did you file your federal tax return but not the georgia tax return?

Just be mindful that georgia does not recognize bonus depreciation. 
Therefore, there can be instances where your federal AGI is higher than your GA AGI due to the add-backs.

Best of luck