All Forum Posts by: Fulton Abraham Sanchez

@Jen Loch, hi.  

The % allocated to accelerated depreciation in a cost segregation study can vary based on the property's components—things like finishes, appliances, land improvements, and overall build quality play a big role. STRs with more personal property and exterior assets (like pools, patios) often yield closer to 30-40%.

If you’re planning renovations, it's usually smart to do a cost seg study after the work is done so you can capture the full value. That said, in some cases a two-phase approach makes sense.

Feel free to email me if you’d like to go over your numbers—cost segregation can be a powerful tax-saving tool when used strategically.

@Gerald Mamuric, hi. I'd be happy to assist with the accounting side and help you structure things to maximize your capacity as you grow. I work with investors nationwide. Feel free to email me. Looking forward to connecting!

@Patrick Shep, hi. A 1031 exchange from a personally held property into an LLC using a DSCR loan is possible, but it requires careful planning to stay compliant with IRS rules (especially around "same taxpayer" requirements). There are a few structuring strategies that can work depending on your timeline and goals. Happy to connect and walk you through the best approach.

@Damon M., hi. Great question! I assist real estate investors across different states with entity structuring, tax strategy, and compliance—especially for fix & flips like yours. The way you structure your LLC can definitely impact both liability and tax outcomes, especially with partners and hard money involved. Happy to connect and share some insights based on what's worked best for other clients in similar setups.

@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.