All Forum Posts by: Gregory Wilson

Sorry, NFL Player. You should not do what you say you want.
What you have is money. That's all you bring to the game. Everyone has money. They don't even know what to do with it. Your dentist has $4,000,000 in his 401k plan. The guy that turns on and off the lights in the P&G lobby has a couple million in stock. The world values your money at 3 or 4% with no risk. 8 or 10% with moderate risk. And, if a higher return is offered with moderate risk, don't believe it. They wouldn't be coming to you.

So you can get a gold standard investment advisor and give up .5 to 2% of your return, or you can send the money to one or more huge index funds like Vanguard 500 index fund and sleep well at night.

But if you think you have something of value other than the generic value of money, you will be sorely disappointed. Now if you have name regocnition and want to be a front man that is a different story. . . . 

Linda,Please do not think I am denigrating the skill that you and other paid preparers bring to the process. I'm not. But, just as a point of intellectual dialogue, could you tell me which one, if any, of the 31 questions on pages 2, 3 and 4 that might be answered with a check mark in the yes block and which would need any explanation to a well functioning adult who has a newly formed 2 partner entity with a single residential building? Possibly #27 or #31? Any others?

Quote from @Linda Weygant:

Quote from @Gregory Wilson:

An Ohio single multi family rental LLC filing as a partnership for 1065 has maybe 30 numbers to go into a tax filing plus the names and addresses and SSN or EIN's of the members. If there is every a case for DIY this is it. By a copy of Turbo Tax Business and learn to do it yourself.

You forgot about the time spent learning how to calculate inside and outside basis for a partner's equity in the partnership/LLC. Because IRS rules state that this is required to be completed on the Tax Basis now.

There is also learning how to calculate depreciable basis vs land value of the property, because we all know you can't depreciate land.  

Does the OP also know about the de minimum rules for assets/repairs/improvements?  How about the best way to analyze additional assets for the best depreciation status.  Is Bonus going to be better or worse?  Is anything available for Section 179?

What about all those check boxes on Schedule B?  Does the OP know what each one means and the consequences of answering any of those incorrectly?

Folks who think taxes are Plug N Play, or Monkey See/Monkey Do are a bit delusional that five minutes of googling replaces a competent tax professional who actually knows and understands all areas of the 1065 and related schedules.

True.
There are a few questions one must muddle through. But if a person can operate a cell phone that person can prepare a 1065 for a newly acquired multi family property. I say that having prepared my first tax return for $$ in 1967 on a psychologist's kitchen table with a ball point pen and about 5000 entity tax returns later my last one for myself on September 10th 2025 or so. It took me about an hour and a half.

Certainly if there are complications or transactional history professionals should be involved.

An Ohio single multi family rental LLC filing as a partnership for 1065 has maybe 30 numbers to go into a tax filing plus the names and addresses and SSN or EIN's of the members. If there is every a case for DIY this is it. By a copy of Turbo Tax Business and learn to do it yourself.

Real estate taxes are a problem here in Hamilton County. Not so much in the out of county metropolitan area: Butler, Warren, Clermont, Dearborn In., Kenton, KY.

A 6 family selling for $1,000,000 will incur $26-30k of annual real estate tax. That $5,000 per unit. You see the problem.

He should read his mortgage and see what it says about renting and/or converting to rental. His "owner occupied" loan application is ok if he intended to live there when he applied. But, there may be restrictions in the mortgage.

Quote from @Timur Salikov:

How much did you buy it for and what's your annual tax bill? Recently I got a huge increase also. On a 320k property Ill be paying 9k annually. 

It will be about 3% of tax value which is the sale price in a recent sale.

In our area, it is rare to find a gas station where the real estate is owned by the operator. They are always leased here even for the corporate stations where they have a convenience store, a Popeyes or the like and a car wash.

When we do a shell, cost segregation is the best approach.

But I would urge planners to consider that the Sec 263 regs they rely upon for the justification for not expensing remodeling costs is actually an exclusion section which prohibits deductions under pspecified circumstances that being that the amount was: "
paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate."

Sadly, it is not always about price. It is about supply and demand.  Price is a consequence not a predicate. There is no faster way to lose your pile than thinking price is a predicate for a sale. The OP in this thread needs to create a demand for her property.