All Forum Posts by: Joe Wood

Lance Lvovsky great lance, thank you. I set up a single member llc. Would I still be able to do as you said with mileage reimbursement? Also, if I wanted to add my wife to the llc, would this change the way we file taxes?

Hey everyone,

Stumbled across section 179 while looking for ways to increase my deductions. Anyone familiar with this? My wife and I bought a Ford Edge which is in our names, not the LLC. Will we be able to expense part of it? Would I need to transfer ownership to the LLC?

This is what I was reading..

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction for depreciation including both the Section 179 expense deduction as well as Bonus Depreciation is limited to $11,060 for cars and $11,160 for trucks and vans.

Exceptions include the following vehicles:

• Ambulance or hearse used specifically in your business;
• Taxis, transport vans, and other vehicles used to specifically transport people or property for hire;
• Qualified non-personal use vehicles specifically modified for business (i.e. van without seating behind driver, permanent shelving installed, and exterior painted with company’s name).

Limits for SUVs or Crossover Vehicles with GVWR above 6,000lbs
Certain vehicles (with a gross vehicle weight rating above 6,000 lbs but no more than 14,000 lbs) qualify for expensing up to $25,000 if the vehicle is financed and placed in service prior to December 31 and meet other conditions.

@Brandon Hall Okay, good to know Brandon. Would I be able to do the depreciation on this up front? oppose to doing it over 27.5 years?

@Ben Leybovich

Thanks Ben, makes sense. With a single family home though, wouldn't I be able to take into account items such as the roof, septic, possibly well and other larger ticket items?

Hey guys,

I understand that with a residential rental property, we are able to depreciate the house, not land for 27.5 years. My accountant told me that he would be able to accelerate the depreciation up front during the first year of purchase in order to avoid a huge tax bill from when I withdrawal from my IRA.

Is anyone familiar with this? Am I able to depreciate the the entire house up front or is it over a few years? I'm awaiting a response from my accountant but definitely would like to hear what fellow BP members have to say.. thanks!

Thanks guys,

The main reason, aside from liability, is to allow myself to deduct expenses through my LLC when making repairs on my rentals.

Single vs multi member doesn't have different "limits" for the amount you're able to label as expenses?

Hey Guys,

I'm debating whether or not to set up the LLC as a single or multi member. I have been reading numerous articles/references on which to choose. Still awaiting my accountants response but he is hard to reach.

If I were to do multi member, it would be my wife and myself. 

When it comes time to filing taxes, what would be the advantages/disadvantages? 

Would I be able to claim more expenses with multi? 

Would I be able to reduce taxable income with multi?

Or would having a multi just make the process difficult since there would be multiple filings?

Thank you all very much for your responses. Since my father was not over the age of 70, we are not required to have minimum withdrawals. My financial planner who is overseeing the account has said that I can take out any amount during any period of time (does not matter if it's one lump sum, five years or life expectancy). 

@Frank L. Bridges

Very thorough response, thank you!

I was not aware that you are eligible to invest an inherited IRA into a self-directed. If I were to do this, would my cash flow from rentals have to be reinvested into the account? or would I be able to keep this income?

Also, I would be required to take minimum distribution amounts in the new, self-directed IRA? Even though I am not required to take distributions in the current, inherited IRA?

Hey Guys,

I recently inherited a traditional IRA (Non-spouse) and would appreciate additional feedback from those who are familiar with what options I would have. I am looking to pull out about $100k right now in order to purchase some investment properties.

The big question I have is, will I be able to transfer this into my LLC which then can be used as an investment to avoid/defer tax?

From what I understand, self-directed IRA's are able to avoid tax when investing directly into something that is considered an investment.. real estate. Only problem is I cannot do that since I'm not the spouse.

I have spoke with my accountant and he said that we can accelerate depreciation up front in order to avoid the large tax hit initially. Downside is when it comes time to sell, I would be hit with depreciation recapture tax. From what I've read, it would be a maximum of 25%, which still would be better than income tax. 

Andrew A. I sent you an email. Pam Lehr does Jwb do multifamily apartments as well? I see them marketing a lot of single families