All Forum Posts by: Christopher Smith

This has always been a very confused area if measured by the responses I've gotten over the years, even from numerous CPAs. My property managers are all incorporated so its my understanding that no 1099 misc needs to be issued by me to them for their monthly retained fee, they in turn do issue 1099s to all unincorporated independent contractors that perform work on my properties.

So even though I do claim 199A QBI benefits for all my Rental Real Estate activities (as they satisfy the 162 trade or business standard), I assume there is still no requirement that I file a 1099 Misc as I make no payments to unincorporated independent contractors?

I think the only TSP folks eligible for the higher limit (58,000) are for military personnel earning combat zone pay. So if you are a civilian it's N/A.

A better option might be a reasonably knowledgeable CPA with a practice that has a significant real estate focused client base. When I see the word "creative" I get that funny feeling folks are opinion shopping for the lowest tax option and/or the lowest billing rate which can be rather dubious selection criteria.

I use turbo tax and I find it more than adequate for all my rental properties. How much background do you have in taxation and how distasteful do you find preparing filings? 

I'm fairly comfortable in the area and have really good PMs who aggregate the data for me, so I don't really feel I need additional help with the actual filings. Additionally, all of my properties are taxable income positive so I don't have the all complications associated with PALs, but do have 199A computations.

I personally like having full control over the reporting process, but it's definitely not for everyone especially as you scale up.

Some folks are going for DST arrangements. I frankly am not so impressed by them because of their very high internal fees, but they can simplify the 1031 process especially for a seller that wants to stay or get out of the active property management saddle.

I obviously don't know your fact pattern, but unless the amount is really significant attempting to collect from deadbeats (with or without an agency) is pretty futile. It's usually not worth the time and resources invested.

The one time I used an agency they did little to nothing to actually make a recovery. I've only had two or three delinquencies in 20 years so others may have had more experience, but I would be surprised if many have had much success even with a collection agency.

Do you own a crystal ball🔮? If not just hold it at least until you qualify for the full exemption. The market timing highway is an exceedingly difficult and dangerous path to navigate and most folks who try end up as road kill.

Add the expenditures to your cost basis in the property so you can recover them when you sell it.

You'll need to consult with the Oracle of Delphi to truly understand how the Substantial Economic Effect rules work. 😵

Passive activity losses don't offset investment property gains, but for a 25k amount for those with minimal AGI.

Additionally, the concepts of cost segregation and accelerated depreciation have in my opinion been vastly and repeatedly distorted in some of the comments on BP. You would think reading some of this very dubious commentary it's as simple as buying any nature of real property characterizing 99% of it as something other than 27.5 / 31 year property per a "Cost Seg Study" and then merrily expensing the whole kit and caboodle in year 1 - voila.

Good luck with that unless you really enjoy playing tax deduction Russian Roulette.