All Forum Posts by: Basit Siddiqi

@Jodi Kaili

There are several options to finding a local CPA.

1) Use the biggerpockets search function to see if a fellow BP colleague is already in search of a CPA in Salt Lake City. I did a search and provided you links below. I like this choice because you can see who people recommended and ask people who they decided to go with and if they like working with their them.

https://www.biggerpockets.com/forums/51/topics/265...

https://www.biggerpockets.com/forums/51/topics/224...

https://www.biggerpockets.com/forums/86/topics/135...

2) Add the keyword alerts "Salt Lake City" and/or "Utah". You will notice that there are frequent posters who respond to posts that have these keywords. Network with these individuals and ask who they use for a CPA.

3) Attend local REIA events. These events will normally contain seasoned investors and would be more than happy to refer you to a CPA. You can find local REIA event through the Biggerpockets events section or meetup.com. Below are 3 events that will happen in and around the Salt Lake City Area soon.

https://www.biggerpockets.com/forums/521-events-an...

4) If you are still unable to find a CPA that matches your needs. You may want to reach out to a CPA that works with clients remotely. There are many CPA's on this site that do so.

In the meantime - Feel free to ask any tax questions you may have. I would be glad to give you my opinion on the matter.
Also feel free to connect with me on Biggerpockets if you would like to ask me a question in the future!

@Rob Hakes

There are several options to finding a local CPA.

1) Use the biggerpockets search function to see if someone already is in search of a CPA in Salt Lake City. I did a search and provided you links below. I like this choice because you can see who people recommended and ask people who they decided to go with and if they like working with their them.

https://www.biggerpockets.com/forums/51/topics/265...

https://www.biggerpockets.com/forums/51/topics/224...

https://www.biggerpockets.com/forums/86/topics/135...

2) Add the keyword alerts "Salt Lake City" and/or "Utah". You will notice that there are frequent posters who respond to posts that have these keywords. Network with these individuals and ask who they use for a CPA.

3) Attend local REIA events. These events will normally contain seasoned investors and would be more than happy to refer you to a CPA. You can find local REIA event through the Biggerpockets events section or meetup.com. Below are 3 events that will happen in and around the Salt Lake City Area soon.

https://www.biggerpockets.com/forums/521-events-an...

4) If you are still unable to find a CPA that matches your needs. You may want to reach out to a CPA that works with clients remotely. There are many CPA's on this site that do so. 

In the meantime - Feel free to ask any tax questions you may have. I would be glad to give you my opinion on the matter.
Also feel free to connect with me on Biggerpockets if you would like to ask me a question in the future!

In regards to your question on what questions to ask - a lot of people suggest to ask questions like "do you own real estate" or "do you have real estate investor clients". These questions are easy to lie about...(unfortunately). You should be clear to describe your tax situation(I am a buy and hold investor, i invest out of state or I fix and flip) and then wait to see how the CPA responds.

@Michael Gessner

You may want to look into structuring the GS and Fix and Flip businesses as S-corps.
There is potential self-employment tax savings going this route. 

Considering the fact that you have laborers assists the fact that you can save on self-employment taxes.

Please be wary that creating an S-corp has initial set up fees and fees associated with its upkeep(annual SOS fees + annual tax returns). You should look to see if the potential savings will outweigh the administrative costs.

I would not put the properties that you intend to buy and hold into the S-corp.

Let me know if you have any additional questions.

@Justin Y.
A solo401k will not work in relation to a buy and hold rental business.
You need "ordinary income" for you to qualify to put away in a solo401k.

rental income does not qualify.

@Rahul Sunkavalli

There are several options to finding a local CPA.

1) Use the biggerpockets search function to see if someone already is in search of a CPA in Central New Jersey. I did a search and provided you links below. I like this choice because you can see who people recommended and ask people who they decided to go with and if they like working with their them.

https://www.biggerpockets.com/forums/51/topics/401...

https://www.biggerpockets.com/forums/51/topics/439...

https://www.biggerpockets.com/forums/51/topics/255...

2) Add the keyword alerts "Central NJ" and/or "Central New Jersey". You will notice that there are frequent posters who respond to posts that have these keywords. Network with these individuals and ask who they use for a CPA.

3) Attend local REIA events. These events will normally contain seasoned investors and would be more than happy to refer you to a CPA. You can find local REIA event through the Biggerpockets events section or meetup.com

4) If you are still unable to find a CPA that matches your needs. You may want to reach out to a CPA that works with clients remotely. There are many CPA's on this site that do so.

In the meantime - feel free to ask any tax related question. I would be more than happy to help give my opinion.

@William Fisher

There are several options to finding a local CPA/tax specialist.

1) Use the biggerpockets search function to see if someone already is in search of a CPA in Central New Jersey. I did a search and provided you links below. I like this choice because you can see who people recommended and ask people who they decided to go with and if they like working with their them.

https://www.biggerpockets.com/forums/51/topics/401...

https://www.biggerpockets.com/forums/51/topics/439...

https://www.biggerpockets.com/forums/51/topics/255...

2) Add the keyword alerts "Central NJ" and/or "Central New Jersey". You will notice that there are frequent posters who respond to posts that have these keywords. Network with these individuals and ask who they use for a CPA.

3) Attend local REIA events. These events will normally contain seasoned investors and would be more than happy to refer you to a CPA. You can find local REIA event through the Biggerpockets events section or meetup.com

4) If you are still unable to find a CPA that matches your needs. You may want to reach out to a CPA that works with clients remotely. There are many CPA's on this site that do so.

In the meantime - feel free to ask any tax related question. I would be more than happy to help give my opinion.

@Jonathan Ramos

There are several options to finding a local CPA/tax specialist.

1) Use the biggerpockets search function to see if someone already is in search of a CPA in Orlando. I did a search provided you links below. I like this choice because you can see who people recommended and ask people who they decided to go with and if they like working with their accountant

https://www.biggerpockets.com/forums/86/topics/104...

https://www.biggerpockets.com/forums/51/topics/169...

https://www.biggerpockets.com/forums/51/topics/382...

2) Add the keyword alerts "Orlando" and/or "Florida". You will notice that there are frequent posters who respond to posts that have these keywords. Network with these individuals and ask who they use for a CPA.

3) Attend local REIA events. These events will normally contain seasoned investors and would be more than happy to refer you to a CPA. You can find local REIA event through the Biggerpockets events section or meetup.com

4) If you are still unable to find a CPA that matches your needs. You may want to reach out to a CPA that works with clients remotely. There are many CPA's on this site that do so.

In the mean time - feel free to ask any tax related question. I would be more than happy to help give my opinion.

@Christian Marianecci

You mentioned that you acquired the property a couple years ago. 
considering the fact that you mention you have a tenant in place with a lease to expire sometime in 2019. I suppose you have been reporting the rental income and expenses(including depreciation) on your tax return.
If you get paid in Italian currency - it is your job to convert the amounts in USD when reporting it on your return.

If you hold the property in an entity(partnership or corporation) you may have additional informational forms to file with the IRS.
If you have a bank account in Italy with a value over $10,000 - you also have an additional informational forms to file with the IRS.

You should have been entitled to a step-up in basis upon inheritance. However, if you plan to sell it in 2019; you have to decrease the basis by the depreciation you took(or should have taken) on your tax returns.

Creating an LLC taxed as an S-corporation for each property would be quite costly(depending on how many flips you do in a year).

A) If the property is in CA or if CA deems you do be doing business in CA - CA will charge a minimum tax of $800
B) You would need to pay a fee to register and dissolve each CA LLC
C) you would need to pay a fee to your accountant to elect the entity to be taxed as an S-corp.
D) you would need to pay $500+ for each S-corp tax return to your accountant

With that said it depends on what your exposure is for liability purposes to see if it is worth it to have multiple LLC's.
If you have 5 fix and flip projects going on at once and a contractor sues you for whatever reason - are all 5 fix and flips exposed?

If you are doing one at a time - I dont see anything wrong with doing it all under one LLC(taxed as an S-corp); however, I am not a lawyer and you may want to confirm with one.

Banks normally require 30-45 days to close on a mortgage. So if your closing date is 30 days out - you may still be able to shop around.

Just because you have $50,000 doesn't mean you have to use it.
20% of $70,000 is $14,000 with a balance of $56,000.