All Forum Posts by: Cody Z.

able to recommend a CPA to talk with?

How old is this house? These things aren't unusual in old houses. Are there problems like wavy floors and soft spots or doorways that are out of square? A few bags of concrete and mortar and blocks can easily replace these cobbled up supports. Home inspectors often overstate problems and call for licensed tradesmen and engineers to further evaluate to cover their ***.

It looks like it could easily be 30k. It looks like you would need to rebuild the foundation and the floor joist system. You would need to evict the tenants to complete the work. For the right price I might move on it but more than likely I would walk for this one. 

Looking for a tax professional that is familiar with real estate investing. I live in Amesbury, MA and have a total of 5 units in addition to a full time job.  I have been using H&R Block and think it's time for an upgrade.  Looking for recommendations for 2018 tax filing  and continued tax support.   

I'm looking for a CPA / agent specialize in real estate in south bend/mishawaka area 

Do you guys know any good one in the area?

So not sure if this is in the right subforum.

So I and 3 friends created an LLC to invest in a larger RE operation. The big company buys 500+unit apartment complexes and BRRR's them, offering 'shares' as Limited Partners to investors, distributing quarterly distributions.

This is an informal conversation from the big LLC manager:

"The first several years have significant depreciation, which is a non-cash loss and really just shields from tax exposure. It does not mean that the property is losing money. Because of the large depreciation-based losses, you will actually have some passive losses to distribute amongst your partnership. These can be used against other passive gains you may have from other investments. Also, our distributions are treated as return of capital (not return on capital), which means that you aren’t taxed on the cash distributions during the early years of the deal.

To answer your question specifically, if we hold the asset for more than a year before selling, the profits are treated as long-term capital gains. If we sold the property just 6 months after acquiring, then the profits are ordinary income."

So I'm starting to do taxes (TurboTax Business) and trying to create an 1065 so we can file K-1s.

We started LLC Feb 2018 and signed the docs by March.

• Total initial investment = $100k (split 25/25/50 among 3 members)
• Total distributions earned in 2018 = $2,515.63 ($628.91/$628.91/$1257.82)

Is this something I can do in TurboTax or do I need to get a CPA involved?