All Forum Posts by: Basit Siddiqi

Why are you giving your friend a deal on the rent?

You run the risk of the IRS classifying the property as 'personal use' if you rent the property for a lot less than FMV.

Live where you want and invest where the numbers make the most sense.

The benefit of living in NYC is that you hopefully make a nice salary compared to others in the country.

This gives you a competitive advantage when you want to buy properties in other parts of the country.

If you are investing in NYC, you are not investing for the cash-flow but the potential appreciation.

I used to live in NYC(now I am a digital nomad) and I decided to invest in Florida.

Most cost segregation study firms operate at a national level where they will send a professional to your property to generate the report.

You own the property as tenants in common, not through an entity.

If you can claim real estate professional status, you can offset the losses from the real estate against the income from the retirement distribution.

You may still be subject to the 10% penalty.

The good thing about a condo is that you pay potentially be eligible to depreciate more of the property compared to other types of residential properties.

Best of luck!

Do you own the business and real estate in your personal name or within a disregarded entity?

If you do, then you will be filing one individual tax return that reports both your business and rental properties.
It will not be efficient to work with multiple accountants to work on one tax return.

The potential way out of this is if you have your business or rentals owned within some type of entity that will require a separate filing obligation such as a partnership.

You may want to consider working with someone who understands business taxation and real estate taxation.

Best of luck!

 Ideally, it would be equity for me.

Sorry to hear about your loss.

Make sure that you calculate the step up in basis as you inherite the properties.

You need the following for a successful partnership - Money/Capital, Experience and Time.
What do you bring to the table?
What do your friends bring to the table?

Do any of the friends have experience in real estate?
If none of you do, your goal should be to connect with someone who does have experience.
Otherwise, it is the blind leading the blind.

There is a level of participate required when you buy a business and a piece of property.

While it always depends, on average, acquiring a business will normally require more work. However, the pay-off can be much larger.

I believe people need to increase their ordinary income before they consider making investments.