All Forum Posts by: Basit Siddiqi

There is a tax software that can calculate what your federal and state income taxes based on the income that you put into the software. The software is BNA Income Tax Planner.
The software also allows you to project what your future federal and state income taxes will be based on projections that you put into the software for future years.

The thing is that a company will need to generate a lot of money to build a database that captures all the state information.
State information changes on a year by year basis and someone would need to update the database based on these changes. Furthermore - if any information is wrong - can someone sue the company. 

It seems doable but there would be work involved.

@Ean Savoy

There are many options of finding a local CPA with experience in real estate tax strategies.

1. Use the search function if a BP member previously was in search of a CPA. I like this approach because you can ask the posters who they ended up using and if they like working with them.
I went ahead and pulled up 3 posts of Baton Rouge individuals asking for a CPA

https://www.biggerpockets.com/forums/432/topics/10...
https://www.biggerpockets.com/forums/686/topics/40...
https://www.biggerpockets.com/forums/561/topics/44...

2. Attend local real estate investment networking events. You can use the Events section of BP or go on meetup.com for groups/events. 

3. Find the big players in Baton Rouge on BP.
Add the keywords "baton Rouge" and "Louisiana" to the BP keyword alerts. You will notice that there are frequent posters who respond to topics with these keywords. Feel free to add these individuals to your network and ask who they use as a CPA.

4. If you are still unable to find a local CPA - Feel free to broaden your search by looking for a CPA that works with clients remotely. There are many CPA's on BP that do so.

In the meantime - feel free to ask any tax related questions. I would be glad to give my input.

Good luck on your search!

NYC Residents have a lot of options in investing in real estate

1) Investing in parts of upstate NY
2) Investesting OOS that nearby such as in PA, NJ, MA and CT
3) Investing OOS that is not nearby
4) Investing in NYC(if you are banking on appreciation and have the cash reserves)

There are alot of meetups/ real estate investing networking groups where a lot of us invest out of state/upstate

@Derrick E.

LLC's will benefit you if you own these properties free and clear and do not have proper insurance coverage.

If you get sued - the individual can go after all the properties.

From a legal perspective - How many properties will you hold in each LLC's?
Many people will argue to have 1 LLC for each property.
Ultimately - it depends on how much each property is worth and your comfort level.

From a tax perspective - as long as you are the only member of the LLC - it will be considered pass-through and reported on your individual tax return.

It doesn't look like it costs much to create and LLC in West Virginia(per Nolo.com)
$100 initial fee to set up the LLC
$25 annual fee to keep LLC in good standing
$30 fee to West Virginia for Business license with the state

Most CPA's offer a free consultation. Provide your tax profile during your consultation and see if the CPA/Tax accountant connect. 
Are you looking to connect with a local CPA or one who works with clients remotely?
Feel free to use the search feature, local REIA and recommendations for a local CPA. Otherwise there are many CPA's on this site who work with clients remotely.

@Bruce C.

I think there are 2 things that we should discuss here.

Keeping personal and business accounts separate for limited liability purposes

one of the reasons for creating an LLC is to limit your liability exposure.
Commingling funds between personal/business can pierce the LLC and you can lose the purpose of the LLC.
You should set up a trail that you indicated items paid from your personal account were contributions to the LLC and possibly have your business account reimburse your personal account.
Another issue might be if the property isint in the deed of the LLC - if you even have protection.

capturing expenses for tax time
If you decide not to reimburse yourself - just let your accountant know what expenses you paid from your personal and business account that went towards your rental property.
He will be able to properly classify it on your tax return.
 

@Alex Bedar

Rental Income provides great opportunities in the sense that your cash-flow is likely gonna be greater than your taxable income because of depreciation. Depreciation is a non-cash expense that the IRS allows you to take based on the wear and tear of the building that you purchased.

Rental income also is great because it provides you the opportunity to offset your other income if you have rental losses(if your Adjusted gross income is below $150,000).

If you are a flipper - you can potentially pay 50% of taxes. However, it is good to align yourself with a CPA to avoid this from happening.

@Daniel Pichardo

Welcome to biggerpockets!
As many investors have echoed - NYC is a very expensive market

You have the following options
1) Investing in NYC - require large capital and a good choice if you are banking on appreciation in the future.
2) Invest in upstate NY or CT/MA/PA/NJ
3) Invest through a turnkey property
4) Househack(may be difficult in NYC but doable in parts of NJ

Have you looked into attending any local real estate events in NYC? 

@Jennifer C.
is the $800k-$900k and 1 million amounts after paying off any mortgage(if any)?

What is your rental income after all expenses?

I love brooklyn(raised and currently living here). I would have to assume that you can achieve greater cash-flow if you sold/1031'ed the property and invested elsewhere. The issue you have is that Denver is also a hot market where property values have skyrocketed.

Have you looked at areas near Denver that cash-flow well?

@Marc Biedenkapp
You should register the LLC in Texas(The state where the properties are currently located).

If you purchase properties in FL and GA - you have the option of purchasing the properties in the LLC that holds the Texas property and register in Florida and Georgia.
The alternative is to create a new LLC in Florida and/or Georgia.

I would not create an LLC in Nevada. If you create an LLC in Nevada; You would need to pay a fee to create the LLC in Nevada, Annual Fees to Nevada and a registered agent in Nevada.

@Matthew Gross

I went ahead and pulled a couple postings of people based out of Cincinnati requesting Attorney's and CPA's. Feel free to use the links to ask the posters who they ended up using.

CPA
https://www.biggerpockets.com/forums/81/topics/493...

https://www.biggerpockets.com/forums/51/topics/250...

https://www.biggerpockets.com/forums/86/topics/144...

https://www.biggerpockets.com/forums/311/topics/51...

Lawyer
https://www.biggerpockets.com/forums/51/topics/416...

https://www.biggerpockets.com/forums/51/topics/396...

An alternative to find a CPA/Attorney is to attend a Local real estate networking event. Please use the biggerpockets events feature or go on meetup.com to find local networking events.

In the event that you are still unable to find an CPA/Attorney - feel free to broaden your search to include CPA's/Attorney's that work with clients remotely. However, you prolly want to find a local attorney because laws vary from city to city.

Please feel free to ask any tax questions that you have in mind.