All Forum Posts by: Lance Lvovsky

 On the tax side, additional reporting and compliance obligations need to be addressed. Withholding for foreign partners, filing of Forms 8804/8805, preparation of partners' individual nonresident alien income tax return, assistance with ITINs for foreign partners, etc.

Regarding counsel in this area, send me an email and I can make some introductions.

@Jess White

No difference in deductions. Difference lies in application of overall losses against other sources of income such as wages and no net investment income tax. Among other but those are major.

@Pete Kay

Consider investing the funds in an opportunity zone, if possible. The tax advantages are numerous. Just get with a CPA knowledgeable of tax laws who can explain this to you. Another option if you do not want to recognize the gains but want to use the equity in your portfolio is to use the portfolio as collateral for a loan. Although this carries risk, it is an option.

Since you are unhappy with your CPA, consider hiring a new one. Now is a good time to hire a new CPA and you have time for tax planning before year end.

@Farhan Ahmed

I don’t know of anyone there. Could try asking a local investor. But also many investors work with remote CPAs. Plenty CPAs on here work with investors from all over so you can try searching on the website here.

Try asking local investors whether they use a local CPA they can recommend.

Otherwise, you may be better of hiring a remote CPA, that is if you are comfortable with that. There are many on here.

@Scott Scharl

The partnership could loan funds to limited partners as a means of providing them with additional liquidity.

 I second what Michael Plaks said. There are many CPAs on here. Connect with a few and take it from there.

@Mark S.

Generally a step up in basis would apply. Section 754 basis step up is an election for llc/partnerships. Speak to a CPA who can gather all your specific facts and advise accordingly. Best if the CPA understands estate and succession planning.

@Evan Derheim

Keep in mind you will need to register the LLC in CA which has an annual minimum franchise tax if $800 plus WA state as a foreign LLC. You will want to consult with a CPA to determine tax implications and state tax filings before proceeding. Your CPA and attorney together can advise on best entity type for optimal tax efficiency.

@Olga Merino

If they own in their names and treated as sole proprietorship for tax purposes then yes I recommend separate account for each property. With 4 properties you will have 4 entries on schedule e of their tax return. Makes your parents lives easier and the cpa who is preparing the tax return easier. Also helps in organizational in the event of an IRS audit.