All Forum Posts by: Jason Malabute

From my own personal experience, every time I buy a property in a different state, I create an LLC in that same state to hold that property. Then I have a main LLC here in California that owns the out-of-state LLCs. My thinking is that California is very aggressive when it comes to taxes — it wants a share of all your income, even income earned outside of the state.

It’s also important to remember that LLCs are mainly for asset protection, not tax savings.

You’ll still want to reconcile your actual business bank and credit card statements. That’s the key part that keeps everything accurate. Once that’s done, review the property manager reports to make sure nothing was missed — like reimbursements you paid out of pocket or deposits that accidentally went to a personal account. Those should be adjusted with journal entries in your bookkeeping software so everything ties back correctly.

Why does it have to be in Maryland? Bookkeeping can be done anywhere, especially with QuickBooks being online nowadays. What really matters is finding someone experienced who understands how real estate investments are accounted for and can properly categorize transactions for rentals and mortgages.

I've used both QuickBooks for my own rental properties and Buildium for multi-family clients I've worked with. QuickBooks is a great fit if you want full financial visibility for your LLC—it tracks income, expenses, mortgage, and insurance easily, and keeps your books clean so tax filing and loan applications are much simpler.

Register here first before joining: https://us06web.zoom.us/meeting/register/qQAMfkBuRja7dkBfqq2...

I’m really sorry to hear that you had a bad experience with this tax advisor. Unfortunately, I’ve seen situations like this before — and it’s exactly why I always caution clients to be careful when someone offers to take on last-minute tax work.

I’ve been in the accounting and tax profession for over 13 years, and from experience, when a professional agrees to handle a complex return right before a deadline, one of two things often happens: either important items and deductions get overlooked, or the project gets pushed to the very last minute and risks missing the filing deadline altogether.

I know it’s frustrating, but try to take this as a learning experience. When you’re evaluating a tax professional, look for someone who takes the time to properly review your situation, plan ahead, and communicate realistic timelines. It may take a little longer upfront, but it saves a lot of stress — and potential money — in the long run.

I totally understand where you’re coming from — it can feel tough to justify paying higher fees when your portfolio is still growing. But the reality is that it’s really hard to get top-quality, strategic tax advice and expect it to be cheap.

Think of it like your health: if you had a serious medical issue, you probably wouldn’t pick the cheapest doctor. You’d look for the one who has the right experience and can give you the best guidance to protect your long-term well-being. The same principle applies here.

LLCs are for asset protection not tax advantage

Yes, if the average stay is 7 days or less and you materially participate, short-term rental losses can offset W-2 income. The key is meeting the 100-hour rule — you must work 100+ hours and more than anyone else on the property.