All Forum Posts by: Lance Lvovsky

@Everett Munroe

Generally the state where the asset is located is okay; but other times clients organize in a state such as Delaware or Wyoming for varying reasons (legal driven). the best advice I can give you is speak to your legal counsel.

@Michael Plaks

Thanks Michael for the mention.

(It must be the allure of the sunshine state! Though, a “cold front” is expected this week).

@Naz Hossain

If asset is titled to Rev trust you should have a bank account titled to rev trust to collect deposits.

Separately, the proposed structure you are looking at can trigger a trust filing requirement. Speak to your CPA.

You can get a registered agent for the LLC and there are many companies that offer this service for a nominal annual fee. Once the LLC is setup, the ongoing work is mostly accounting and tax related. The insurance coverage you have is good. With the commercial property purchase, I would get some entity setup done, probably an LLC. You wouldn't want to own commercial in your name. You should also speak to your tax and legal advisors regarding estate planning and make sure your assets avoid probate (generally very expensive).

@Reinaldo Lopez

There are a couple CPAs on here in the South Florida area. Good luck.

@Tyler D'Alessandro

Why would you bug negative cash flow properties? Rental properties are like running a business. You shouldn’t be entering a business to lose cash. With that being said, tax losses can be generated by depreciation. However, if you are making $500k/year, rental losses cannot offset your W2 income. You or your spouse would need to qualify for a real estate professional which is tax law driven. Speak to a CPA. Good luck.

@Gabe Chime

If you get a state issued K-1 from the LLC, good chance you will need to file a state income tax return at personal level.

@Chris Turek

Could be asset is held in living trust, could be held in a credit / asset protection trust, could be gift trust, or trust funded under a Will. Numerous possibilities. You should speak to tax advisor to understand tax implications.

@Dylan King

There are a number of CPAs on here who represent taxpayers such as yourself. Consider setting up meetings with 2 or 3 and see who you believe will be your best fit. Good luck.

@Sheryl Sitman

Need to be mindful of proper partnership structure. Sweat equity could create income tax liability upon receipt of capital interests. You and tax advisors need to review partnership agreement regarding profit vs capital interests, allocations, and capital accounts.