All Forum Posts by: Jack Faysash

I've used YNAB for years and believe it may be a bit less expensive than QuickBooks (although I'm not sure if I'm grandfathered in to a rate).

Hey Julia! Way to be proactive to start off the tax season. The biggest benefit of doing a cost segregation study would be to claim bonus depreciation, which has to be claimed for the tax year that the property entered service - meaning the year it was first rented. If this was in 2021 and you choose to do a cost segregation study, you'd have to amend your 2021 return to claim the bonus depreciation, and this would have to be done before filing your 2022 return. If the property entered into service in 2022, you'd have to get the cost segregation study done before you file your taxes. It will take sitting down with an advisor to determine the best option to take, but I hope this helped.

I think it all really depends how involved your wife wants to be. For example, my wife is in the medical field and really enjoys what she does, and trusts me to make the majority of the financial and investment decisions. I keep her in the loop of course, but finances simply are not something she is as interested in. Is there a specific reason that you want to get your wife interested in the concept of "financial freedom"?

Put it all in Bitcoin! Just kidding - a Fidelity or Vanguard fund may be a smart move with the caveat that you are taking on a little risk, but just research funds that historically perform well each year. Maybe diversify and put half into these funds and another half into CD's.

Financial aid is usually limited by household income, which would include any money made from real estate investments. They’d likely look at your tax returns from the previous few years. If you’re thinking about college, I’d recommend starting a 529 savings plan so you can save and have tax free gains. I’d also suggest looking into scholarship requirements for your state. For example, Florida has the bright futures scholarship which is based solely on merit. I don’t suggest banking on financial aid, take a proactive route in saving for college.

Jordan, I am having a hard time understanding why you’d take out a loan to get out of debt. The smartest thing to do is to attack the “bad debts” - debt on anything that is not an asset but a liability. This could be a boat, a camper trailer, a huge truck, student loans, etc. Your good debts should be paid off after taking on all of your bad debts. I suggest selling things you do not need, or even downgrading on things you can, such as your vehicle.

No, but I'm guessing you'll still have to pay state taxes in California. Florida is the best state for taxes if you ever considered moving.

The IRS has internet access haha. I’d be extremely careful writing things down such as “fake a lease”. But the IRS does not view house flipping as real estate investing, so anything you try to do will just be to offset self employment income. I really scratch my head when people think they can just “offset their income” with real estate. In order to lower your taxable income on the $130k, you’d have to LOSE money in real estate investments, and what investor intentionally loses money? Real estate has tax benefits and a safety net to lower your taxable income if you have loses in a year, but don’t plan to lose…

Just curious, is there any reason to rush out of the home? How much do you expect to profit on the sale? If it’s minimal profit I’d suggest moving, but if you’re talking thousands it makes the most sense from my perspective to stay put. If I had to guess, I think you may be concerned of a market crash, so you’d have to compare how much you’d expect to lose in taxes vs. how much you’d expect to lose due to a market crash. I’d suggest waiting till the two year mark.

Happy Sunday everyone! I commonly see posts on this forum for CPA and tax advisor referrals. I’m curious on how much everyone pays for those services, and if you find the costs to be worth the rewards of having a CPA or tax advisor on your real estate team?