All Forum Posts by: Bill Walston

Bill Walston has started 0 posts and replied 426 times.

Real estate enables me to pretty much do what I want, when I want and with whom I want. It really doesn't get much better than that - Life is good!!

Like Curt I've been able to travel, I've paid off debt and I contribute to causes about which I'm passionate. I've seen tremendous ups and downs in the real estate market since I began investing "way back when" and it's sometimes a wild ride, but all in all, real estate has been "very, very good to me." :)

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Originally posted by Steven Hamilton II:

Bill,

I would however like to add that if a Landlord is a Real Estate professional then by default they will be required to issue 1099's.

I'm sure you would :)

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Kyle, according to IRS PUB 525, a rebate is a reduction of the expense or the basis of an asset. I treat the "rewards cards" in the same way.

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Originally posted by Amanda Hensley:

My accountant tells me that, as a landlord, I do not have to issue 1099s to service providers for 2011. But this thread makes me think that I do. We have only the one rental house and it's not in an LLC or anything. So I'm not sure what to think.

Thanks Amanda, for bringing this up...your accountant is absolutely right for YOUR situation. You are a landlord, not a wholesaler. Only taxpayers whose real estate activities are considered to be a trade or business must issue a Form 1099. Rental activities are treated as engaging in a "passive activity" - not a business. No Forms 1099 required.

[Note: There was a law that was to treat rental activities as a "trade or business" for Form 1099 purposes only, but it was repealed by by the signing of HR 4 (Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011) on April 14, 2011.]

When I read the original post I focused solely on who and who should not receive Forms 1099 and completely ignored the question of whether a form should even be issued due to the nature of the business. If Kyle, like Amanda, is a landlord only, then his question is moot. He doesn't have to issue Forms 1099.

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Originally posted by Bienes Raices:

Thanks again. Another silly question: some of the names I wanted to use have been taken already. Is there any issue with using words like "capital" (ex: "ABC Capital LLC") or "group" (even though I am only one person) in the LLC name instead of "properties"? (I'm aware that you aren't allowed to use "bank", "insurance" and some other terms).

That shouldn't be a problem if the name is available in your state. ABC Capital, LLC, ABC Group, LLC and even ABC Capital Group, LLC all would be acceptable names for your company.

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Originally posted by Bienes Raices:

^ OK thanks. So it sounds like the tenants are a non-issue as long as I remember to use it correctly and the title and insurance companies, etc. record it correctly.

Spot on :)

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A comma is not mandated by any state law. Bottom line - it's a matter of personal preference. The more traditional format is to use a comma. The more contemporary way is to not use a comma.

The important question is how you register your LLC with the state. Your state will approve your company name exactly as written. You should use that name consistently. While the difference may appear trivial to you, in the legal universe it could prove to be significant. :)

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Originally posted by Tod Radford:

This may qualify as overkill, but some attorneys are professional corporations. We take the position they do not need to receive a 1099. I suppose this is where your rule of sending to everyone would eliminate any issues.

Hi Tod. Sorry, but your position on that would be incorrect. The IRS specifically states that the corporate exemption from 1099s does not apply to legal corporations.

The instructions for Forms 1099 state:

Ya just gotta love the consistency of the Internal Revenue Service ;)

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Originally posted by Josh Sterling:

My question is: Do I just get to add that total to my cost basis in the property and depreciate it over 27.5 yrs, or do I get to devide things into their specific recovery periods (5, 7, 15, 27.5 yrs) and depreciate them using their faster recovery periods?

Disclaimer- I will end up doing what our accountant advises, I'm just trying to do a little pre planning before we take our tax paperwork to him, and it's nice to get a discussion going to learn from everyone on BP :)

If you have the information available (and it appears that you do) I would definitely go with allocating the expenses to the proper categories (rental property, appliances, land improvements, etc)and depreciating them accordingly. Take advantage of those write offs :)

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Originally posted by George P.:

But seriously - Why in the world an elementary school?

Because in some parts of the country, parents are there to pick up their children. Elementary/middle schools can be high traffic areas.

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All Forum Posts by: Bill Walston

Bill Walston has started 0 posts and replied 426 times.

Post: What has RE investing done for your business and your family?

Post: 1099s

Post: Rebates and Taxes

Post: 1099s

Post: Use a comma in LLC name, or not?

Post: Use a comma in LLC name, or not?

Post: Use a comma in LLC name, or not?

Post: 1099s

Post: Expense tracking for rehabs

Post: vehicle wrap anyone?