All Forum Posts by: Basit Siddiqi

A successful partnership requires the following skillsets among its partners - Time, Money and experience.

Which skills do you possess and which skills does your friend possess?

Turbo-tax is a software that has different versions(the more advanced versions allow for more capabilities and forms to be completed).

The software, like any other, is only good as the input.
Garbage in, garbage out.

If your tax return is simple, someone with only W-2's and a few interest /dividend accounts, I think a software like turbo-tax is great.

If your return is more complicated, I would consider working with an accountant.

I would only suggest a property management company set up if you are not working for an employer and are interested in retirement account contributions + deducting health insurance costs.

If you are already working for an employer who is providing a retirment account plan + subsidizing health insurance costs, in my opinion, no point in setting it up.

Building is a great property management software along with accounting capatbilities.

I agree that you shouldn't spend a couple of thousand dollars on an accountant if you have two small properties. It would likely kill all your cash-flow.

In my opinion, filing + advice for someone with that portfolio size should be less.

best of luck

As others have mentioned, you chose the wrong dates to interview an accountant.

If you mentioned to the accountants that you were looking for assistance for 2024 and going forward, they may have mentioned to call in November to engage them.
They may have throught you needed help with your 2023 tax return.

Regarding your situation, you will need to file a resident SC return and non-resident returns with NC and IL.

Best of luck

Have a chat with your accountant to see what the gain and tax consequences are.
Once you know what the tax consequences are, you will know whether a 1031 exchange is a good fit.

Your gain = Sales price less costs to sell less adjusted Basis.
Adjusted basis = purchase price + improvements - accumulated depreciation.

Hi Hamed

Your profile mentions that you are a realtor along with having some rentals.
You may want to have a discussion with your tax advisor to see if you are eligible to claim real estate professional status.

It depends on where you are on the investing phase, everyone will be in a different part and have differing opinions.

I was in the growth phase a couple years so I looked to take on more debt to build my portfolio.

I accumulated a lot of wealth after all the appreciation over the past 5 years.
I am now looking to decrease my debt.
Once the debt is paid down, I will be able to get an increase in monthly cash-flow that would have went to interest / principal paydown.

Remember the goal is a comfortable living situation and not to acquire more rentals(or another job).

Are you at the step of analyzing properties but you haven't got anything under contract yet?

I would focus your attention on professionals who will help you acquire your property(Agents, wholesalers, other investors) as your first step.

Your real estate agent should be able to refer you to a couple of insurance agents / brokers in the area.
I am not sure that you need 3-4 brokers to be honest. 
One broker should have a web of 5+ insurance agents hes working with so if you are working with two brokers, you should in theory have connections to 10+ agents in the area.

Furthermore, you can likely wait to talk to an accountant until you have a property under contract.
Having discussions with an accountant before you have a property or strategy will likely be high level in nature.

Best of luck!