All Forum Posts by: Fulton Abraham Sanchez

Hi Kim, you've come to the right place. There are over 20 active CPAs here in Biggerpockets assisting RE investors with their tax planning, no need to hire in-house. Make sure to reach out to one with real estate experience. Please contact them as we are not allow to self promote.

Hi Paulette. 

- The acquisition cost refers to your property's purchase price.

- Depreciation should be calculated over 27.5 years.- Yes, if the property is rented, you can claim depreciation and must also file Schedule E with your federal return.

If you need further assistance, you've come to the right place to reach a tax professional. 

Hi Hayley. Based on your scenario, generally speaking, forming an LLC with two members and directly own the RV tends to offer better liability protection. It also provides clear advantages for managing taxes and write-offs compared to personally owning the RV and renting it to your LLC. However, we always recommend discussing your specific situation with a tax advisor to ensure the most suitable approach for your needs. You've come to the right place to reach one.

Hi Travis. The ability to offset W-2 income from mid-term rentals can be limited. Most tax advantages discussed on BP involve depreciation, deductions, and strategies like real estate professional status or short-term rental loopholes. You may want a quick consult with a CPA specializing in REI to clarify your specific situation. Here is the best place to reach one.

Hi James, based on your house-hacking strategy and the goal of maintaining easy access to equity while maximizing asset protection and tax efficiency, establishing an LLC—particularly a single-member LLC (disregarded entity)—tends to align closely with what you're exploring. Many investors also couple this structure with appropriate insurance coverage to enhance protection without overly complicating equity access. The S-Corp route is usually more beneficial for managing earned income rather than directly holding properties.

If you'd like to go deeper into details or explore specific scenarios, you've come to the right place. Feel free to reach one RE professional experienced.

Ana, hi. Yeah, the LLC should be without any trust. It should be in the name of the person, otherwise the 1031 exchange will not work because if they are buying the property, the 1031 exchange should be in the name of the person, of the LLC, who is owned by a person, not by a trust, it will not work.

You've come to the right place for advisory, we are experienced CPAs active in these forums, many of whom specialize in assisting real estate investors like yourself, bringing comprehensive tax planning and strategies, providing valuable insights. Feel free to reach one.

Hi Amy, I've never heard of them. You've come to the right place, there are over 20 enlisted CPAs here in Biggerpockets working with real estate investors across different states. Feel free to reach out to one, as we are not allow to self promote.

Hi Tom. Unfortunately, once a property has been acquired through a 1031 exchange, any transfer of ownership—even if no money changes hands—can potentially trigger a taxable event if not handled correctly. The IRS requires that the same taxpayer who completed the exchange remains the owner to preserve the tax-deferred status. Transferring the property to another entity, may be seen as a change in ownership and could invalidate the exchange benefits.

You've come to the perfect place to ask advisory for this process. We are over 20 experienced CPAs active in these forums, many of whom specialize in assisting real estate investors like yourself. Reach one to guide you through a compliant solution.

Hi Daniela, you've come to the right place. There are over 20 active CPAs here in Biggerpockets assisting RE investors with their tax planning. Please, make sure to reach out to one with real estate experience, as we are not allowed to promote.

You'll report rental income & expenses only for November & December 2024 since your LLC was formed then. Need help? you've come to the right place. There are over 20 active CPAs here in Biggerpockets assisting RE investors with their tax planning. Make sure to reach out to one with real estate experience. Please email them as we are not allow to self promote.