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All Forum Posts by: Bruce D. Kowal

Bruce D. Kowal has started 37 posts and replied 273 times.

Post: RE Accountant (STR experience).in Atlanta?

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

if this is your first STR, then a guide from HR Block may be helpful: https://www.hrblock.com/tax-ce...

Post: Qualify as RE professional with full time W2 and single status

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

If you have time, a highlighter and pencil, ready to take notes, this is an excellent article:

Real Estate Professionals: Avoiding the Passive Activities Loss Rules

In particular this summary of a Tax Court case:  "In Vandegrift, the taxpayer was employed as a salesman at a salary of $120,000. Despite his outside employment, he maintained that he was a real estate professional who spent more than 50% of his time and more than 750 hours on real estate activities. Because he did not maintain contemporaneous records of his time and did not submit any other records to verify his estimate of his time spent as a salesman or as a real estate businessman, he did not establish that he was a real estate professional. "

Moral: keep good records.   For an example of good record-keeping read this:  Birdsong v. CIR

Your last point deals with the Active Participation exemption for Investors whose Modified Adjusted Gross Income ranges from $100,000 to $150,000.  Those investors can take up to $25,000 in losses as long as they participate in management. 

Don't confuse Active Participation with Material Participation.

Mr. Rioja, if you are bright enough to properly phrase the question, then you should not have a problem reading the suggested article, understanding it, and applying to your own unique facts and circumstances.

[My Daughters both graduated from UT Austin.  Celebrated at The Salt Lick.  BYOB and great brisket.  Fond memories.  Do they still have the speed trap in Selma?]

Post: 1031 Strategies or Cash?

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

Keep in mind that real estate prices are at a cyclical high, and interest rates are also high.  If you decide to redeploy your proceeds you will be doing so at the top of the market ... just think about that before you do anything overly complicated and hasty.   There is an intangible premium to sitting on cash, despite the ravages of inflation.  That premium is the ability to swoop down and get a property from an Owner desperate to sell.  IMHO that premium outweighs 8% annual inflation.

Try talking to commercial real estate brokers.  Tell them that you have pile of cash for use to buy property at fire sale prices.  And that you will pay their commission, instead of the Seller.  See what kind of response you get.

Post: Partnership Logistics for New Property

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199
Quote from @Chris Seveney:

@Katie Lyon

If they are passive and multiple investors be careful of syndication laws as if the deal goes bad and someone files an sec complaint the fines could be significant.

Recommend looking up the howie test when taking $ from other investors.

Close.  It's Howey.  https://en.wikipedia.org/wiki/...

 It was cited today in the WSJ with respect to cryptocurrency holdings.  Can someone who lost money hold the bitcoin miner's responsible under security laws.  

Post: RALF - Business Structures for RE holding and managing companies

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

Three partners will own equal shares in each entity?  Are the all the Partners US residents?  No Foreign Nationals?  That affects S Corp status.  If this is your first venture into the RALF business, you might want to join a trade association, and see what others have done.  Ask questions of the Staff, find articles already published on this.  Maybe there is a local Florida trade association.  Pick brains freely for this.

Post: CPA/RE tax expert out of state owner question.

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

Oh, yeah!  She pays tax to California on CA -source income.  That would be a Non-resident tax return.   And she files her PA tax return, because PA is her tax domicile.  But she will not be double-taxed, as PA will give her a credit for the tax paid to CA.

https://revenue-pa.custhelp.co...

You have a "Client"?  Are you an Attorney?

Post: Carry forward losses and depreciation recapture tax - Rental

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

If you are using TurboTax, why not model this?  Input the data and see what comes out.  If you are asking for a tax professional to do the work for you, with no compensation, then you will get what you pay for.

Post: Audit CPA in North Carolina

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

Check with the North Carolina Society of CPA's.  https://www.ncacpa.org/about/c...

Post: Newbie Searching for North Jersey Local Meet-Up Recommendations

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

Try some Meetup groups, like this:  https://www.meetup.com/real-es...

Post: How to advertise rental unit in NYC

Bruce D. Kowal
Posted
  • Metro NY + New Bedford
  • Posts 276
  • Votes 199

Have you tried the Corcoran Group?  They absorbed the Citi-Habitats business.  https://tsun.citihabitats.com/...