All Forum Posts by: Lance Lvovsky

@Alethea Sealy

What does the operating agreement say?

@Charlie Flowers

Not reporting all the income can possibly mean the statute of limitations didn’t start (depends on amount) in which case the IRS can come after you at any time. On your dad’s Estate income tax return, I would report all the income after date of death through estate closure. I would also amend his 2-3 prior individual income tax returns to report all income during the last couple years.

Cost segregation studies are best utilized on multi-family and commercial properties. With that being said, you may benefit on your SFH's; an analysis would need to be done. Furthermore, if you are subject to the passive loss rules and not a real estate professional, your CPA should communicate to you whether you can actually utilize the tax benefits from a cost seg study.

If you move back to your home country and you continue to maintain your US citizenship, the under US tax laws, generally speaking you would still be subject to tax on your worldwide income. I say generally as this is the general rule, but there are exceptions, particularly treaty based exceptions. In addition, you may qualify for the foreign earned income exclusion, which can effectively exclude certain foreign income.

Highly recommend you consult with a CPA who understands these tax implications and can advise you accordingly.

@Anthony Wick

Tax law is extremely complex and the compliance and administrative burden have only become exceedingly complicated after the Tax Cuts and Jobs Act.

@Lior Golan

There are plenty of areas in Florida where you can still achieve the 1% rule. I have clients (and I invest too) all over the state achieving great cash flow. As a foreigner, you will need to consider US tax implications, the filing of US tax returns, obtaining an ITIN, etc.

Since you have a built-in gain, then the related party loss rules are not applicable to you. You cannot sell the property without triggering capital gain. If you don't want to sell, you can contribute to the LLC, and then your partners will be required to contribute an equal amount each of the value of your contribution. When you contribute property to a partnership, your adjusted basis gets increased. Hopefully your CPA has been tracking partner's tax basis (outside basis), in addition to inside basis. After your partners contribute their share, the LLC can then make distributions of cash with respect to each partner's ownership. This is how you can get cash in your pocket, without triggering a taxable event.

I agree with above. Particularly, if you own the properties in your name where there is no business return involved, excel is fine. But if in a partnership or LLC taxed as a partnership, then excel may not work as well. It can work for 1 rental, but more than 1, gets a little more difficult. A balance sheet is required, and if you don't provide a balance sheet to your CPA, then he/she will need to prepare it, resulting in higher tax preparation fees.

@Curtis Lewis

You do need a CPA familiar with the tax laws for foreign nationals. You will need to obtain an ITIN. In addition to your federal tax return, you may also have state filings so keep that in mind.

@Kathy Lindsay

There are over a dozen CPAs on here. I would contact a few and take it from there.