All Forum Posts by: Bill Hampton

@Felicia Jenkins

I recommend going with a long term rental. I own a long-term rental in Lithonia. 

There may not be much demand for a short term rental that far from Atlanta. Check AirDNA for demand, pricing, etc.

The Dekalb Board of Commissioners has proposed regulations for short-term rentals. https://engagedekalb.dekalbcountyga.gov/airbnb-dekalb-county

Short term rentals require you or your property manager to be hands-on and come with more risk. The same goes for Padsplit. 

Padsplit residents can cause problems with neighbors and other residents because many have substance abuse and/or criminal histories. 

If your padsplit residents have vehicles that can cause parking issues. If they don't have vehicles your property will have to be near bus lines or Marta. 

Long term rentals are easier to manage and come with less risk. This is important for first time landlords. 

Good luck and let me know if I can be of assistance. 

@Ignacio Vidal Traver

You came to the right place. A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

I recommend finding an accountant who specializes in real estate taxation and tax planning.

You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

There are over 20 real estate accountants on this site. Reach out to a few, see who you like and see if they are accepting new clients. We are not allowed to solicit clients. 

Good luck 

@Rochelle Gerber

Here are some of the downsides of putting real estate into an IRA or 401k.

No tax deductions: You can’t claim deductions for property taxes, mortgage interest, depreciation, repairs, improvements and other property-related expenses.

Property expenses: All expenses, repairs, and maintenance costs must be paid with IRA or 401k funds, and you must pay others to do repairs and manage the property. You can't even change a lightbulb.

You or your family can't use or live in the property. 

You can't sell a portion of a property like you can sell portions of stocks, bonds, mutual funds, etc. You may have to sell the whole property to access the funds in the IRA or 401k when you retire.

If you violate any of these rules you could blow up your IRA or 401k and the IRS could force you to distribute all of the assets in the IRA or 401k. This could lead to a huge tax bill and penalties at the end of the year.

Think carefully before you do this. 

Good luck. 

@Kylie A.

You came to the right place. A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

I recommend finding an accountant who specializes in real estate taxation and tax planning.

You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

There are over 20 real estate accountants on this site. Reach out to a few, see who you like and see if they are accepting new clients. We are not allowed to solicit clients. 

Ask your potential accountant do they own real estate, do they have clients that own real estate, and how many years of experience do they have.

Good luck.

@Zac Kucharek

You came to the right place. A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

I recommend finding an accountant who specializes in real estate taxation and tax planning.

You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

There are over 20 real estate accountants on this site. Reach out to a few, see who you like and see if they are accepting new clients. We are not allowed to solicit clients. 

Good luck.

@Tran Duong

You came to the right place. A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

I recommend finding an accountant who specializes in real estate taxation and tax planning.

You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

There are over 20 real estate accountants on this site. Reach out to a few, see who you like and see if they are accepting new clients. We are not allowed to solicit clients. 

Good luck.

@Nicole Cotrino

Key factors: Do you materially participate in managing the property? How many hours do you spend managing the property vs. others, etc?

You should find a real estate accountant first. They can help you find a good cost segregation firm and get you a free estimate. 

Bonus depreciation from a cost segregation study is 60% for 2024. It goes down to 40% in 2025, so it will definitely benefit you to get it done before the end of year. 

Ask your potential accountant do they own rental properties, do they specialize in real estate taxation, how many years of experience do they have, etc.

Good luck. 

@Brandon Morgan

An LLC will not reduce your taxes. However, an LLC can be used to open a business bank account. A business bank account can be used to separate your business income and expenses from personal income. This also helps with asset protection, monthly bookkeeping and annual tax return preparation.

Good luck. 

@Jhamari Hogan

Jason, is correct. You should buy properties for cash flow, appreciation or both. Hire an accountant who specializes in real estate taxation to handle your taxes. 

Good luck. 

@Ryan Kline

You need to speak with an accountant as well as an attorney. You should never put real estate into a C corporation. Second, your tax prep fees would increase dramatically. Your plan is overkill, as previously stated, and will significantly increase your taxes if you try to refinance properties held in a C corporation.