All Forum Posts by: Basit Siddiqi

There is an amount that you can distribute from an IRA account to purchase a personal residence.

You then might be able to turn the personal residence into an investment property.

Best of luck.

There is a lot of different terminology used in the tax world.

Interest income, for the average taxpayer, will be considered 'portfolio income'. Portfolio income, such as interest does not have any preferential tax rates so it is taxed at your ordinary tax rates.

For the average taxpayer, interest income will not be considered active or passive which the original poster is trying to claim(as passive income).

You, from my understanding, are in the business of originating and buying notes. For you, you likely have crossed the level of it being a trade or business. Your interest income will be taxed differently than the average joe. For you, it will likely be business income / ordinary income(non portfolio) where it will be deemed active / passive depending on your level of participation.

There are some court cases out there where people who originate 4 or more loans in a year are moreso deemed in the trade or business of lending money.

It will depend on the original poster's taxaccountant to determine how he/she will treat the income.
The one con of it being business income is that it may be subject to self-employment taxes.

It depends on if you got to the level of a trade or busienss which would determine if its ordinary income or not.

Then the amount of time you spend on the business would determine if its passive or non-passive.

New York has one of the more complex tax laws in the county.

In my opinion, I would not work with a remote accountant since your tax return is likely more complex for the average remote accountant.

You mention both you and your spouse being self-employed.
You may be subject to the New York MCTMT tax which most non-NY CPA's will not be familiar with.

Furthermore, you have a multi-member LLC in a non-community property state which may require the filing of a partnership return.

Best of luck to you in your search.

It is a 15 year asset eligible for bonus depreciation.

The good thing about Texas is that the state does not have a personal income tax.
This does give you more freedom in being able to look for an accountant outside of the state.

Rental arbitrage is a concept that most accountants will not understand what you are doing.
It is best suited ot work with an accountant who is real estate focused and can understand BP real estate lingo

Best of luck

It may be possible that your accountant is confusing it with real estate professional status

If you are a property manager and own a bunch of rentals, you may want to see if you can claim real estate professional status. This will allow you to offset the rental losses with your PM income along with other forms of income such as wages, interest, dividents, etc

best of luck.

The good thing about purchasing an RV Park / Mobile home park is that potentially, a good portion of the purchase price will be eligible for bonus depreciation.

This assumption is assuming you don't own most of the mobile homes but moreso the park and lease out the land.

Best of luck.

I read through some of the posts that you created - Please keep track of the costs that you used to screen and evict tenants. Those will be eligible deductions.

Best of luck