All Forum Posts by: Cameron Skinner

I live in FL, If I were you I would just file a small claims suit. And sue for binder back. Even if the binder is over 5k you can add a clause requesting "specific performance" which means you ask the judge to order them to sign the release. Even though the contract states mediation lawsuits scare people, he will probably just sigh after he is served. I had an issue with HOA it require mediation per Florida statute but I did above. First hearing with judge their attorney brought up this point judge set a hearing on that issue they settled before the hearing. They probably didn't want to pay all the attorney fees. Your clerk of the Court website for your county will probably have all the forms online. It's easy and quick.

Online sucks. Pro is a really good piece of software, and you only have to buy it once as long as you don't have payroll. I know guys still using 2000. But hire someone who can come in and help you set it up as a rental company and teach you how use it properly and set up your reports the way you want to see them. They usually charge about 45 an hour but well worth it. Make sure you set up each separate property as a "class" and get the quickbook checks. Good luck, it's a big learning curve but in a couple of months you'll be 1'000 times more efficient. Good luck.

I had a high paying job as a corporate tax consultant. And decided to give it up for full time real estate investor in 2004 when I was 30. Best thing I ever did. When your 100% focused you'll find and get better deals, so you will build wealth much quicker.

I would strongly sugest you set up a Solo 401k not a sdira. You don't need a custodian and you can act as the trustee. Solo 401k is far superior for real estate investors. Won't trigger urbi tax like the sdira if you use a loan. Mysolo401k.net has a lot of info on subject

Every state is different on if you have to pay transfer taxes on quit claim deeds here in FL if you have a loan on a property and quit claim deed it to a LLC you will owe tax, but free and clear you won't. If you can easily transfer them I would put them in an LLC as you can treat as a disregarded entity for IRS purposes which means you can keep them on your personal return and not have to file a separate return. Be careful make sure if you have a loan the bank will allow the transfer search "due on sale clause". Also check with your insurance company as could effect rates. Good luck

I just checked irs.gov you can roll part or all of your 401k to any traditional ira then set up your solo 401k and take a distribution as long as you put money in solo 401k with-in 60 days no tax issues. Make sure you contact ira provider let them know you intend to put into another qualified plan and not to with hold the 20% tax withholding they will make sign several forms to promise your putting in another qualified plan. It's common for low level customer service to insist they have to withhold 20% it's a way to pressure people from not taking money out so you might have to go a few levels up. Good luck

When you buy a big business asset it wears out over time. The tax code allows you to take this "wearing out" as an expense over a specific period of time. Homes actually tend to appreciate vs depreciate so it becomes a huge tax advantage for real estate investors. Careful depreciation is not tax free, it just defers tax. You have to recapture the depreciation expense you take when you sell the property.

While technically you are supposed to send a 1099 to someone you paid more than $600 a year on a rental property, or you will owe up to $100 per missing 1099 document penalty. But IRS almost never assesses this penalty on small landlords doing renovations. If you are intentionally paying someone under the table, maybe a property manger at a complex, then you could owe $250 for intentionally not filling. The penalty is really designed for big businesses like Home Depot who have thousands of independent carpet installers, ect. Also you're not required to send 1099s to corporations. Many small businesses are S corporations. Limited liability companies "LLC" can file as an S corporation, so LLC are kind of a grey area of the law.

Looks really high to me we usually charge 1100- 1400 total for an s-corp with rental property and with clean books. That includes tax planing and advice. If I were you, I would shop around just make sure they either own rental property, or have a lots of experience with rental property. Whatever you do don't use TurboTax, I can't tell you how many times I've done follow up work behind TurboTax, and my clients have missed out on tens of thousands, in tax savings.

Married couples can file a multi member LLC as a "disregarded entity" on your personal return as long as long it is wholly owned by both of you, you file a joined return, and you live in a community property state.