All Forum Posts by: Lance Lvovsky

I suggest you speak with a couple CPA's to get a feel of who you would be comfortable with. If you want local CPA's only, then of course you would be limited to those around you. If you don't mind working with a CPA remotely, then there are several of us on here on the forums that work with clients all over the country.

I would say the two most important things you want from your CPA is a) they should be real estate investors and b) someone who can be your trusted advisor for taxes and financial planning.

A good CPA knows not only tax laws, but can assist you with tax planning and also financial planning.

Good luck!

@Billie Cousans Do you have enough equity in your home to do a cash out refi or a HELOC and then turn around and use the funds to acquire a condo? Private money is also an option.

If you need a good mortgage broker, let me know. I have several that I use and that my clients use on a regular basis.

An LLC is not the only way. Generally, it is the best way however. This all depends on your specific facts and circumstances. Yes, you should keep in mind the financing terms, as mortgages to an LLC are commercial loans.

I recommend you get with a CPA who can assist you with your questions and advise you accordingly.

The answers to your questions are all "it depends". With that being said, your $15,000 in renovations most likely would all need to be capitalized and then depreciated. However, a good CPA can advise you which items you can depreciate over a quicker schedule (example: 5 years instead of 27.5) and which items may have bonus depreciation available (allows you to deduct 50% of the cost in the first year).

Definitely get with a good CPA who can not only assist you with the tax returns, but can also advise you on tax planning and strategy so you would be best positioned to maximize your tax deductions. Let me know if you have any other questions.

In addition to the above, each LLC will need to have it's own books and records and follow formalities. You do not want to commingle LLC funds with other business or personal funds.

Furthermore, it may be worth discussing with a CPA (and possibly attorney) whether it is a good idea to create separate LLC's for each property. The costs of maintaining LLC's should be taken into consideration.

I am not a wholesaler either but I did want to welcome you to the forums. Do not hesitate to reach out if you have any real estate or tax related questions

If you purchase the property with your partner as "tenants in common", then both of you will be on the title and the mortgage statement would be issued to both of you as well. For tax purposes, both investors would simply report 1/2 of all income and expenses on their respective Schedule E. I recommend getting with a good CPA who help you plan this. Let me know if any questions.

If you are going to hold it as a rental, then you generally do not want to elect to be taxed as an S Corp. I generally recommend LLC for rentals. Now whether you will have a single member LLC or multi member LLC will of course depend on how many members in the LLC. A single member LLC is a disregarded entity and you will report all income on your 1040. I recommend you consult with a CPA who can advise you how to best structure this taking into account your unique tax situation. Let me know if any questions.

You could utilize a 1031 exchange but you would have to acquire a new property (or properties) that are equal to or greater than the sales price (less selling expenses) of the two properties you are selling.

It is hard to give advice without knowing more about your tax and financial picture. I would get with a CPA who can advise your accordingly. For example, it may be worthwhile for you to get cash out of your existing rentals if you want to payoff another mortgage.

Lazaro La Rosa Keep in mind that you get stepped up basis in the inherited property. That is something you need to know whether you sell the property or rent it out (depreciation). A good CPA can assist you with this. Let me know if any questions.