All Forum Posts by: Lance Lvovsky

They can transfer the propery(ies) as a gift, and would have to file a gift tax return. However, assuming their lifetime exemption amounts are intact (currently approx $11.5M each), no gift tax owed. Their basis in the property is carried over as your basis - something to consider. 

Speak to your accountant whether there is a better way to structure this. It is all about the individual facts and circumstances. There is no blanket answer here.

You will have to file a return in IL and pay income tax in IL on income apportioned in IL. If your LLC is a single-member, then no entity level return is required. If your LLC is taxed as a partnership, you will need to file an entity level tax return. I would recommend speaking to your CPA as depending on the type of investment, a different structure may be well suited.

You have a number of CPAs on here who work with international investors. Reach out to a few. Also, I think @Linda is in your area if you/your family member want to keep it in CO.

You should find a CPA who perhaps has the specialties from internally that can service multiple needs - whether it is service business, manufacturing, real estate, etc. With a family partnership and multiple assets, you also need trust/estate planning expertise from your CPA. I would say most of my clients have their legal counsel handling the legal matters, and CPA handling tax matters. Tax attorneys, at least in my world, generally combine their expertise with another legal area (i.e. estate planning attorneys who also under tax (not always the case). 

Tax attorneys do not get involved in tax return preparation, so while helpful for planning, you need your CPA involved with that. Lastly, the tax attorneys I know that truly are tax specialists charge exceptionally high hourly rates. Not saying that as a bad thing - but you need to the right client profile. 

Yes, you can report as part of rental income on your return. Your property manager should be grossing that reimbursement amount up with total rents paid on the 1099...

Have you tried doing a search? There are a dozen plus accountants on here - perhaps one is in your local area. Good luck.

@Natalia Zhou

Most likely on Sch D but not enough info was provided to make a conclusion. Was it a rental or just held for investment etc. Don’t forget about foreign tax credits.

@Lauren Kail

There are a number of CPAs on here who can assist you. Reach out to 2-3 and take it from there.

@John Tapley

Depends on the states but where property is located, yes, assuming that state has an income tax, you would file a nonresident return.

Maybe. This not a black and white answer. If you plan on re-contributing the monies, you may end up re-contributing at higher valuations (stock market), thus losing out on that economic benefit. In that case, run modeling and projection what your return would be on the rental. You do get to spread the income tax. If you expect to re-contribute, understand your timeline, and how you would obtain the cash flow to re contribute funds.