All Forum Posts by: Rohullah Sharifi

1. do a 1031 exchange for another rental

2. Otherwise, if selling it, "Recapture" depreciation will be minus from basis

3. primary residence status changed due to rental 

4. the exclusion is no more applicable

best way to safe, is to do 1031 exchange and defer the gain to future

1. if doing STR and want to keep the property for long term, and in high income

2. Cost Seg worth to do

3. LTR with motive to keep it and one spouse qualifies as REP

4. Remember that Cost Seg, is not free money from govt. it will be "Recaptured" when selling the property

1. if you meet "Material Participation Test" 

2. maintain proper record

3. involvement in STR

4. May register a business as partnership

5. Should qualify as REP

6. Losses can be claimed against active income

7. But only REP without rental might not lead to losses

1. As tax professional, you're not responsible, 

2. however, you should inform the client of the mistake

3. Give him options

4. Let the client decide

5. In do so, you have fulfill your ethical duty and met Circular 230 requirement

1. SD-IRA: you can do invest in real estate and defer the taxes on your retirement account

2. when your heirs get the inheritance, that would Step UP basis

3. flexibility on the investment management

we can help you with tax advisory

1. REP "Material Participation Test" is required to qualify

2. 750 hours requirement

3. Proof of active participation e.g. maintain logs, books

4. or else doing Cost Seg will not benefit you

5. Further adds to "passive loss" 

1. less then 7 days, STR

2. less then 14 days, without requirement to declare

3. active participation in the management of STR

4. Qualifies for "non-passive income" and qualifies losses towards your active incomes

5. if in high income bracket, can do Cost Seg

for qualifying Cost Seg, it needs to come from a accredited and certify source. otherwise, anyone could start to do Cost Seg. 

1. consider pros & cons before deciding for Cost Seg

2. Cost seg study consider overall, divides used material that qualifies for 5, 7 & 15 years depreciate and use.

1. if you only rent 1 single room in your house, you can get deduction for the expense for that particular room plus 15% extra for overall house

2. if Airbnb and whole house is use and planning to keep the property for long term, can do Cost Seg

3. Cost Seg is a current deduction for high income taxpayers

4. upon selling the property "Recapture" hits badly

5. if you're not in high income, just keep the Airbnb and participate actively to qualify for loss deduction