All Forum Posts by: Joshua Thompson

Great question and like Ken said it's great you're taking this into consideration! When we purchased our properties in GA, they were reassessed at exactly what we paid for them in our county. If there are similar properties that have sold nearby, try to do a county search to see how much the property taxes have changed. This is what I do to help get an estimate, especially in GA.

Hey Josh,

Great question! If your income is over $150,000, the losses from the duplex, assuming one of the units is a rental, may not change your tax situation. If this is the case then there is no need to change or reduce your withholdings. However, if your income is below $150,000 then the losses could potentially benefit you.

This brings up the question: do you enjoy receiving a refund, or would you rather not give the government an interest-free loan? We find many clients enjoy receiving a large refund and decide to keep their withholdings the same, even if the real estate will reduce their taxable income. On the other hand, some clients prefer their money spread out over the year instead of a large refund. I would ask which do you prefer?

If you choose to change your withholdings, assuming the real estate losses will benefit you, then any one of the accountants here in the forum should be able to run some numbers for you to provide a new W-4. Alternatively, you can use the IRS withholding estimator linked below, however, software is only as good as its user.

https://www.irs.gov/individuals/tax-withholding-estimator

Hi @Lenny B.

Have you spoken with your tax professional to see if they offer advisory/consulting services? It's often clients only see us for tax preparation but expect consulting with it while consulting is a completely separate service. Many tax professionals offer it but it typically needs to be done before 12/31. Typically, if someone comes after 12/31 for the most part their tax situation is set in stone (minus a few items/strategies).

If you enjoy working with her, reach out and see if she is willing to give you a consultation. If you don't enjoy working with her or she isn't well-versed in real estate, then many of the accountants here in the forums would be adequate if they are taking on new clients 

Hey @Anthony Alexander! I remember that Japan to US time difference, it was tough but definitely possible. I was stationed in Okinawa for awhile, it was a good time. The STR and REPS have two different set of tests and depending on someones situation you'll either qualify for both, one, or neither. You may not even need both.

The hours accumulated for your rental properties in TX could be used to qualify for REPS. When it comes down to material participation you'll want to consider the grouping election.

Both REPS and STR will have their own tests. REPS would be great if you qualify but if you don't then the STR "loophole" is the next best thing for the properties that would qualify.

Hi Jeffrey, 

There are quite a few knowledgeable professionals here in the forums that could definitely help you. If you don't have a few reach out to you soon, I would highly recommend using the BP "Build Your Investing Team" to be connected with a tax professional that could help you. I also recommend reaching out to a few here in the forums and starting a conversation via their inbox.

This is a great question. I think you would get more results if you post it in the Personal Finance section as it seems like a more personal finance question. From the tax side of things, we could talk your ear off on strategies but those tax strategies may not align with your financial goals or be applicable to you. I would highly recommend speaking with @Josh St Laurent. He is a financial advisor worth his weight in gold. He works mainly with real estate investors and could help you strategize from a financial perspective.

Hey @Shawn Questa! We don't have too many local investors  here in Dallas but I have a realtor I can connect you with if you like!

@Jaycee Greene as always thank you sir! Also I have someone you may be able to help and will give you a call later this week! 

Thank you @Jaycee Greene! Welcome to BP @Anastasia Kiryushkina! Jaycee and Mohamed are correct above assuming it's a triplex. Depending on when you purchase the property and when it was placed into service will determine when you can begin depreciating it. If you're not already working with a tax professional I would highly recommend interviewing a few (after April 15th) because the first year is one of the most important to get right and of course all the following years.

If your client works full time they most likely won't qualify as a REP however maybe a spouse could. 

As Greg mentioned you can do a cost segregation on a STR, LTR, or other real assets but your client may not be able to utilize the benefits of a cost segregation based on their full situation.

Typically, a client that has a STR and materially participates should be able to take advantage of a cost segregation done on the property. Assuming they aren't using the property personally over the allowed number of days.

Hi Meg,

If you're looking for someone in Atlanta, I can connect you with someone; however, they are 100% remote and very specific about the type of clients they bring on. 

If you're okay working with your tax professional remotely there are quite a few tax professionals active in the forum here. Depending on availability I'm sure most of them will be happy to connect with you.