All Forum Posts by: Keith Meyer

Could your SDIRA make a loan to a separate LLC owned wholly by several of your business partners and used to purchase mobile homes to bring into the property? You would not be directly profiting from the homes sales, but indirectly would benefit when a new occupied home is achieved at the property.

Thank you, great point you make. Would the depreciation "losses" then become suspended? Could be used to cancel capital gains years down the road?

Can an investor reap the benefits of depreciation by investing in real estate through an eQRP or Solo 401k? Or is this disallowed since it a tax deferred retirement plan?

For those of you out there who are running syndications and screening accredited investors: What would be your accreditation criteria for let's say a family of three people who come to you looking to invest together within an entity (LP, LLC)?

Would each of the three members need to individually meet the accredited investor definition? Could they collectively meet the criteria? What would the verification process look like? I know these types of arrangements are becoming more common, but I've never heard what the official requirements are in order to pass these tests.

Question for the accountants and syndicators out there: Would you count someone taking a 401k/IRA distribution as income towards the $200k annual income requirement for accredited investor status?

For example: If someone earns $150k per year through their job, but decides to take advantage of the CARES Act and take a $100k 401k distribution spread over two years ($50k realized each year), would you qualify them as accredited since they would be demonstrating $200k of income each year?

The extra bonus depreciation realized in year one on the newly purchase property (a paper loss) cancels out the capital gains from the sold property if both transactions happen in the same tax year. So it supposedly accomplishes the same goal of a 1031 in that it defers tax (now the basis in the new property would be reduced due to the consumption of bonus depreciation in the first year). What I'm also not sure about is the impact to depreciation recapture tax on the sold property.

Has anyone recently taken advantage of 100% bonus depreciation through a cost seg study to avoid having to do a 1031 on a large commercial property ($1MM+)? If so can you please message me or post about your experience on the forum? I'm very interested in this tactic on an under-contract property but the devil is definitely in the details and want to remove as much risk as possible. Thanks!

Under contract on the first multifamily property we've purchased for awhile and coming to find we may be behind the times a bit on how to best structure both the RE Holding Entity and the Property Management Entity. Willing to pay for expert Financial/Accounting advice and looking to form a long term relationship with an experienced professional. Specifically seeking advice on:

• Inheritance planning. How to incorporate an heir into the Property Management Entity while ensuring heirs receive the step-up in tax basis. Specific to S Corp's, how to structure so that heirs still receive step-up in basis upon owner's passing
• Depreciation management. How to account for 1031 exchange impact to tax basis and future purchases
• Entity structuring. How to simplify entities to ensure clean accounting books and maximize property attractiveness for future lenders and buyers

I realize these are somewhat different specialties but would prefer to consult with someone with a comprehensive understanding if possible. Figured BiggerPockets would be the place to search!

What legally defines a third party in this case? Would managing property for a family member constitute a third party relationship, if you are not officially a member of the ownership entity?

What legally defines a third party in this case? Would managing property for a family member constitute a third party relationship, if you are not officially a member of the ownership entity?