All Forum Posts by: Kevin DeVargas

@Jack Zhuang

If you decide to amend or superseding the return you will still have to mail them in.

The Devil is in the details. Please let make sure you do the following.

• · Please pay extra for express mail and receipt confirmations.
• · Attach all required forms, schedules and attachments
• · If Supersededs return please check the Superseded Return checkbox
• · If your software does not provide the Superseding options please indicate that on the forms.

I hope this helps let me know if you have any other questions. 

Good luck.

@Soh Tanaka, 

Nice try! 😊 If reading books related to real estate counted as part of the 750 hours. That would open the doors to audio books and even podcast. Just about everyone on Bigger Pockets would qualify as real estate professionals.

@Account Closed,

Your in the right place! 

I recommend Nick Aiola he's an excellent CPA that specialized in real estate. 

@Account Closed

Let me Disrupt this conversation between the three Mikes and share Kevin's experience with the scenario :) 

Your entitled to deduct all expenses incurred regardless if they have SS or EIN number. I recommend purchasing a cash receipt book to keep track of cash transactions. 

Last week I completed over 650 1099's, 500 of them did not have EIN or SS numbers. The client normally pays a fee of $50.00 per 1099 that does not have a tax ID. This practice also opens the doors to other types of audits, fines and penalties. 

Please don't misinterpret, I do not condone this practice. Just sharing my experience. 

@Steve Vaughan,

Thanks for sharing part of your journey and most importantly the lessons you've learned. I recently lost my job in January, long story.... I'm the sole provider for my family. Because I followed the fundamental/biblical rules, it was a hit a hit but not a devastating blow. 

1. I lived below my means and saved money in 401k and personal accounts. Cars are paid off and run great. Funny how some people mock me because I never buy top brands and purchased a nice home but noting luxurious. 

2. I had more than one source of income, my accounting business that I ran on the side. Now i'm going at it full time and placing it in God's hands. 

Good morning BP family,

I have a question. I’m in Georgia and acknowledged an abandoned home that’s located in an up and coming area.

I drove by the home multiple times but it was hard to discover it because it has a large front yard filled with trees.

The homes next to the property range in price materially in price from 200K – over 500K.

What’s the best process to reach the owner? And what do you recommend I do?

@Michael H. ,

Good question. Step by step starting point starter guide for first return.

1. 1. Income – He needs to figure out how much income he made through out the year. Tips on doing this would be to review his bank records and going forward give customers cash receipts for cash payment.
2. 2. Expenses – Second step is calculating expenses for the year. He can review bank statements and credit card statements to get the actual amounts. And would have to recollect items paid with cash. Receipts will also help
3. 3. Filing status – would need to figure out his filling status single, married, head of house hold.
4. 4. Deductions – Calculate deductions such as millage, depreciation on assets and so one. Would also need evaluate dependents and individuals that he will claim.
5. 5. Purchase tax software or hire an Accountant – Tax software is great and I recommend it for low income owners with simple w-2. He may want to speak with an accountant and figure out what’s the best entity structure going forward and create a strategy for his future goals.
6. 6. Last but not least file his tax return. If he owes money the tax software and accountant will give him the payment options. 

I hope this helps let me know if you have any other questions.

@Doug Henderson, I agree with @John Duston. They should send you a 1098 for the interest you've paid them. Unfortunately not all private money lenders keep track of the interest income received. I would reach out to them and ask them for a 1098 or in writing the amount of interest income they received from you. 

@Joseph Niedermeyer,

Don't let the tale wag the dog. Make as much money as you can, don't limit yourself.

You can always reduce your income (AGI) by contributing more to a 401K plan or Health saving plans and many other umbrella's available to you. 

@Sean Harrison,

Agree with @Loren Clive. "I would encourage you to read the laws yourself, the IRS bulletins, and find a CPA who shares your mindset."

You can if your plan your trip to align it with business purposes. A cruise or a trip to a tropical Island that may raise red flags, I'm sure that's not what you're trying to deduct. In general there are many legitimate ways do deduct travel.  

Most accountants play not to loss and don't play to win.