All Forum Posts by: Fulton Sanchez

@Lance Schmidt, hi.  A 1031 exchange could work if the replacement property is held for investment, not just to rent to family. The IRS looks closely at “related-party” transactions, so your parents should tread carefully to avoid disqualifying the exchange. Happy to share more insights if needed!

@Reed Andrews, hi. Setting up your structure right from the start can save you major tax and legal headaches down the line. For BRRRR investors, forming an LLC can help protect assets, but whether to use one per property depends on your risk tolerance, financing plans, and long-term portfolio goals.

Also, since you already have an S corp, it's important not to mix real estate with active business income—two very different tax treatments.

Happy to share more insight if you'd like to dive deeper into the best setup for your goals!

@Christina B., hi. 

Thank you for sharing your experience. You’ve shown incredible patience, and unfortunately, I’ve seen similar situations where firm transitions and poor internal systems create serious downstream issues, especially with depreciation and 1031s. You’re right to prioritize getting everything corrected properly moving forward. If you ever want a second opinion or help reviewing the amended filings, I work with real estate investors nationwide and would be glad to assist.

Hi @Ivy Booth. 

If you're in a community property state, a single-member LLC owned jointly by spouses can be treated as a disregarded entity, simplifying taxes. But for flippers and rentals, the best setup often depends on your income mix, liability concerns, and long-term goals. I work with investor couples across the U.S. and would be happy to weigh in more specifically if you would like to compare options.

@Bethany Peysen, hi.

You're right to expect more than just compliance, strategic guidance is key, especially when you're juggling W2 income and scaling across multiple states. I work with investors like you, helping align tax strategy with growth goals. If you are open to a second opinion, happy to chat and see how we can better support your vision.

@John Anderson, hi. 

Solid question—and you're right to think this through before moving the asset. Transferring to an LLC you co-own can trigger gift tax issues or reset depreciation if not handled carefully. Also, depending on your state, you could face transfer taxes or reassessment. If you want to map out the cleanest path, happy to walk through the tax and legal angles with you.

@Debra Lyon, hi. 

Congrats on the transition—STRs can definitely boost returns if managed well! Since your area draws work-related travelers, consider tailoring your setup for longer stays: strong Wi-Fi, workspace, and mid-stay cleanings. Also, don’t forget the tax shift—STRs follow different rules than long-term rentals. If you ever want to walk through the tax side or cost recovery strategies, happy to chat.

@Terri P., hi. Great questions and you are asking them at the perfect time.

1. 1. A full system replacement is typically capitalized and depreciated over 27.5 years, while a control board might qualify as a repair (and be expensed in the year paid). That said, there are safe harbor and partial disposition strategies that could speed up deductions.

2. 2. Paying in full or using financing won’t change the total deduction, but interest on a loan may be deductible too, just be sure it’s properly documented and tied to the rental.

3. 3. With multiple rentals and W2 income, this is where tax planning gets powerful, especially if you qualify for real estate professional status or short-term rental exemptions.

Sounds like it may be time to move from DIY to strategy. I’m a CPA working with investors like you and happy to help if you need a second look or a game plan for next tax season.

@Lenny B., hi. 

You are not alone, many high W2 earners with real estate portfolios outgrow the “data entry” type of tax prep. What you really need is proactive strategy.

I’m a CPA who works with investors like you to reduce tax liability before filing season hits. Happy to chat or point you in the right direction. Looking forward to connecting!

@Francisco Milan, hi. You can always check Google reviews, webpage, and LinkedIn profile for reviews. 

These days, you don’t necessarily need a local CPA. Most CPAs work remotely with real estate investors across multiple states and can still provide highly personalized guidance. I’m a CPA who works with real estate clients on structuring, tax strategy, and compliance. Happy to point you in the right direction or answer a few questions if you’d like to connect!