All Forum Posts by: Jason Malabute

Hey Dave,

I’m really sorry to hear about your experience—it’s never great when a call feels rushed or like a hard sell. While I wasn’t there to see exactly what happened, based on what you’ve shared and from my own experience, it sounds like they were more focused on closing the deal quickly rather than taking the time to truly understand your needs. Ideally, they should have asked more questions and really listened to what you’re looking for in future tax services before trying to close the deal.

That said, you’ve flagged something important—maybe they’re not the right fit for you. It sounds like you’re seeking more in-depth tax strategy help, which is critical, and this might be a sign that it’s worth continuing to search for someone who can genuinely partner with you and offer the value you’re looking for. Keep at it—you’ll find the right fit!

Best,

Jason

Hi Timothy,

I would suggest that if you’re not experienced with cost segregation studies, it’s best to hire a professional to do it for you. These studies can be pretty complex, and a third-party expert will ensure it’s done correctly and that you maximize your depreciation. If you need any advice or recommendations for some good cost segregation specialists, feel free to message me. I’ve worked with third parties before and can share my experience.

Also, I noticed you mentioned having a W-2 job. Keep in mind that passive losses from rental properties can only offset passive income unless you qualify as a real estate professional.

It’s generally advisable to have one go-to CPA contact who can handle your tax planning, tax compliance, and accounting as a real estate investor. Having a single CPA allows for consistency in tax strategies and communication.

However, there are times when it’s beneficial to get a second opinion. If you feel your CPA may not be fully up to date on certain aspects of your particular tax situation, especially with multi-state holdings, consulting another professional can offer fresh insights or alternative strategies.

Hi Ellen, typically, to claim mileage deductions on your taxes for travel to properties, you would need to either own the property or it would need to be your job, like if you were hired as a property manager. In your case, since your parents own the properties and you’re helping them out, you may not be able to claim those deductions unless they pay you for your services. As Bill suggested, one way to handle this could be for your parents to pay you as a contractor. That way, you could claim the mileage as a travel expense for the work you’re doing on their behalf. And just like Bill said, if they pay you less than $600, they don’t need to issue a 1099

Using a Roth IRA for multifamily investments offers tax-free growth, but you lose the ability to claim depreciation deductions

If you’re not an  investor yet then those travel expenses wouldn’t be deductible. If you are a real estate investor currently already then yes  the travel expenses  are deductible.

Hey Hunter, I’ll save you some time here. You can’t really predict how much your property taxes will go up, not even the county can give you an exact number until it’s reassessed. I’ve invested in Indianapolis, Atlanta, and looked into Kansas City, and every county is different. Some reassess taxes when a property is sold, others do it yearly or every couple of years, regardless of sales.

You can ask the county assessor how they handle reassessments and whether it’s tied to sales or a regular schedule. You can also request the average property tax increases over the last 5 years to get an idea, but that’s not always a strong indication of future increases. Sometimes counties haven’t kept up with rising market values and get more aggressive later. Other times, they’ve been aggressive in the past and slow down later, like in some Kansas City areas right now. And in places like Los Angeles, taxes are based on a specific percentage of  assessed value.

So it really depends on the county!

Hope that helps!

Yes, even if the seller finances the real estate deal, that does not prevent you from taking advantage of the tax benefits associated with owning rental property. You can still depreciate the property, perform a cost segregation study if applicable, and deduct ordinary and necessary expenses related to being a landlord.

Hi Matthew,

I’ve been a CPA since 2015, working in tax and accounting since 2013, and I’ve been a real estate investor myself since 2018. From my experience, you don’t need to engage a CPA just yet. At this stage, your focus should be putting as much money as possible into your first deal, rather than on accountants, lawyers, or consultants.

Hiring a CPA can wait until you’re further along—either when you’ve got something under contract or need help with entity setup or tax planning. Right now, it’s too early for that, especially since you’re still in the learning phase. As an entrepreneur, especially during the startup phase, the goal is to minimize expenses and put most of your money into real estate deals.

Don’t let the absence of a CPA stop you from moving forward. Focus on getting into that first deal—everything else can fall into place after.

Best of luck with your investing journey!

Jason Malabute, CPA

1. Yes, you can take advantage of bonus depreciation if you structure it properly, even with a partner, through a simple LLC or partnership agreement. Both partners typically share 50% of the tax benefits.

2. Bonus depreciation applies to offset any income, not just W-2 income, including passive or active real estate income.

3. Yes, if you don’t hold the property long term or exchange it (e.g., through a 1031 exchange), you may have to recapture the depreciation upon sale.

4. Switching from long-term to short-term rental (STR) applies for the full calendar year when calculating depreciation benefits.

5. Using co-hosts may help, but be cautious of the 100-hour requirement for material participation.