All Forum Posts by: Kevin Schick

Joe, excellent strategy !! Nice and clean.

Here is one to chew on.

I had a property that had some tenants that took the midnight train out of town ...

I worked out a repayment plan with them so they have been paying me back throughout 2007.

The issue is that I sold the property in 2006, so what property on my Schedule E do I now tie this income to?

Since my single member LLC is disregarded, it's not like I have company expense/income. It all ends up on Schedule E under specific properties.

I could still list the property and the associate income, but i wouldn't be depreciating it or anything like that.

I'm sure I could just report it under another property with out any issues, but I don't like mucking up my QuickBooks with something like that.

BMR

I am not an accountant, ... but if the driving cost is tied to this specific not-in-use property, it's not depreciated until the property is ready to rent. Once it is ready to rent, then driving after that point would be expensed. Anything before that point is depreciated.

This all changes if you are in the flipping business where your properties are like inventory to be resold. Then you would expense it all as a cost of good sold transaction, when the property is actually sold ...

My general guideline is if I cannot come to conservative confidence with myself about what I am doing, via what I learn through Turbotax and reading IRS guidelines , then an accountant is a must ...

BMR

Joe, thanks for the input. I am the only member/shareholder of both entities. They were set up exactly for the two purposes you detailed.

The complication is that a couple properties that I bought to resell, have not sold, so they became long term rentals in the S-Corp. I'm doing well enough with other investments in the S-Corp to not worry about the rental income I think, but it is one of the reasons I want to get them over to the LLC.

They have been depreciated in the S-Corp because they have been put into use (earning rental income).

BMR

I have two entities:
1. Single Member LLC for buy&hold long-term.
2. S-Corp 100% Shareholder for buy&sell short-term.

I am thinking of transferring one of my inital 2004 S-Corp properties that I ended having as a long-term rental over into my LLC.

How would this be handled bookkeeping wise.
1. Transfer at cost from one entity to another.
2. Determine FMV and transfer with gain from S-Corp.
For #2 would the gain just be the depreciation recapture?

Thanks, BMR

bingo!

I'm more than willing to give any insight I can on the Indiana areas of Bloomington, Anderson, and Huntington. I currently own properties in each of these towns.

BMR

Corey, so far owning rentals/investments as an out-of-state owner has worked out pretty well. There have been some bumps in the road, like anything else, but once I finally found some trusted resources in the property management and realtor service areas, it has made all the difference in the world.

Those two resources are an absolute requirement if someone is going to make it as an out-of-state owner.

BMR

Hard pill to swallow taking a hit on your investment, but at the same time do whatever you can to put this guy behind bars before he does it to someone else. Most likely he will play you as long as possible, and probably doing it to a bunch of others as well.

You might not get the joy of having your money back, but at least you will know you did what you can to take him off the streets so he can't hurt anyone else.

BMR

Welcome to the group. I own rentals up the road a bit from you, in Anderson.

BMR